An ECB official reaffirms expectations for one more rate hike as inflation risks remain a key focus for the central bank.
A European Central Bank policymaker indicated that another interest rate hike remains a reasonable expectation, citing ongoing inflation concerns. The official expects clearer wage data by autumn to inform the decision, while downplaying long-term oil price impacts from geopolitical conflicts.
ECB President Christine Lagarde earlier reinforced the bank’s commitment to price stability, describing recent policy as “near-perfect.” She noted that inflation risks are now more balanced but emphasized the need to prevent entrenched inflation, dismissing stagflation fears in the euro area.
Lagarde also highlighted the ECB’s flexibility to adjust rates further if necessary, moving away from rigid forward guidance that previously constrained policy decisions.