ECB Splits on July Rate Path as Inflation Sinks Before 1 Policy Decision
Updated
Updated · Bloomberg · Jul 2
ECB Splits on July Rate Path as Inflation Sinks Before 1 Policy Decision
3 articles · Updated · Bloomberg · Jul 2
Summary
Sintra discussions on Wednesday exposed a split inside the ECB over its next interest-rate move, setting up a sharper debate before the bank’s policy decision later this month.
Philip Lane and like-minded policymakers argued inflation pressures unleashed at the start of the Mideast war are still rippling through the euro-area economy.
Others were encouraged by tumbling oil prices and said they were not convinced those earlier shocks would trigger broader knock-on price increases.
That divide leaves the ECB’s near-term rate path increasingly tied to whether falling energy costs keep pulling inflation lower or fresh geopolitical effects prove more persistent.