Markets wait to see if ECB hikes for 10th straight meeting
Carmaker shares hit by electric vehicle subsidy row
Oil markets eyeing 100 a barrel crude

LONDON, Sept 14 Reuters Europe39;s markets were treading water in early trading on Thursday, as investors waited on a knifeedge decision from the European Central Bank on whether to ratchet up euro zone interest rates for a 10th straight meeting.

Stock markets saw carmakers go into reverse after Beijing blasted Brussels39; move on Wednesday to investigate electric vehicle subsidies, but for both euro and bond traders it was very much a case of waitandsee for the ECB.

The central bank for the 20 countries that share the euro faces a dilemma. Even after nine rate hikes in a row, prices are rising at more than twice its 2 target and are not expected to get back to that level for another two years.

A recent run of weak data had left investors leaning towards a pause until Reuters reported on Tuesday that the bank39;s new staff projections due at the meeting later would raise the inflation forecast for next year to more than 3 again.

The economy is deteriorating quite quickly now and they will give them some concerns, said Hans Peterson, the global head of asset allocation at SEB investment management, who expects the ECB to hold rates steady later.

I think the discussion at this point is really about the maximum policy rate and how to prevent a hard landing in the economy.

The ECB39;s deposit rate is currently at…