ECB Signals at Least 1 More Rate Move as Kazimir Says Direction Is Clear
Updated
Updated · WTAQ · Jun 23
ECB Signals at Least 1 More Rate Move as Kazimir Says Direction Is Clear
1 articles · Updated · WTAQ · Jun 23
Summary
June's ECB rate hike left policymakers ready to act again, with Peter Kazimir saying the bank still has "work to do" and that the policy direction remains clear.
Middle East conflict damage cannot be reversed overnight, he said, and the ECB tightened this month to stop higher energy prices from lifting longer-term inflation expectations.
June inflation data will be a key test for the next step, with Kazimir also watching for secondary effects not yet visible in the numbers.
Markets still price in at least one more ECB move later this year, even after energy prices retreated well below recent highs and U.S.-Iran peace-talk developments changed little in his view.