ECB Flags July-August Inflation, Q2 GDP as Key to September Rate Decision

1 articles · Updated · The Irish Times · Jul 24

Gabriel Makhlouf said July and August euro zone inflation readings and second-quarter GDP will provide the key evidence for the ECB’s September rate decision after Thursday’s hold.
Oil prices are the main variable: Makhlouf said he will watch whether the recent energy rebound persists, while also tracking core inflation and any hit to growth.
The ECB left rates unchanged because June’s increase is still feeding through the economy and little new data had arrived since the last meeting, he wrote in a Friday blog post.
Lagarde still left the door open to a September hike as Middle East turmoil risks another inflation spike; internal projections now put inflation near 3%, above the ECB’s 2% target.