Inflation to remain above 3% this year
The ECB’s recent 25 bps rate hike was defended by Chief Economist Philip Lane, citing strong justification due to inflation risks.
Inflation is expected to remain above 3% for the rest of the year, driven by elevated energy prices.
The Eurozone economy shows resilience and steady momentum, despite the mid-sized inflation shock.
The rate hike was in response to persistent upside inflation risks, particularly after the US-Iran conflict triggered a sharp rise in oil and gas prices.