ECB Signals More Rate Hikes After First Increase in Nearly 3 Years
Updated
Updated · Reuters · Jun 15
ECB Signals More Rate Hikes After First Increase in Nearly 3 Years
3 articles · Updated · Reuters · Jun 15
Summary
Peter Kazimir said the ECB’s first rate increase in nearly three years was only an initial move, adding that policy still has “more work to do” to contain inflation.
Higher energy costs from the U.S.-Israeli war on Iran are likely to last longer than hoped, he said, risking broader price spillovers across the euro zone.
Kazimir argued that without further ECB action, second-round effects from the energy shock could become embedded in medium-term inflation.
His comments suggest pressure inside the ECB to keep tightening even after a U.S.-Iran peace framework, because damage from the Middle East conflict will not fade quickly.