ECB July Rate Hike Looks Unlikely as France, Germany and Italy Inflation Eases
Updated
Updated · investinglive.com · Jun 30
ECB July Rate Hike Looks Unlikely as France, Germany and Italy Inflation Eases
3 articles · Updated · investinglive.com · Jun 30
Summary
France, Germany and Italy all reported cooler June inflation, easing pressure on the ECB ahead of the euro zone CPI release on July 1.
ECB officials including Philip Lane, Joachim Nagel, Olaf Sleijpen and Pierre Wunsch said lower energy prices should help inflation and avoided signaling any July move, though Wunsch said another hike may still be needed later.
Reuters reported policymakers now see little case for a July increase unless euro zone inflation delivers a sharp upside surprise, shifting market focus toward a possible September decision after more summer data.
The softer European inflation backdrop kept trading subdued, with gold consolidating near 4,000 as investors waited for U.S. labor and inflation data to shape the broader rates outlook.