ECB Governing Council member signals next move could be a hike or hold, citing persistent wage-driven inflation pressures.
European Central Bank Governing Council member Martin Kocher stated the ECB’s next monetary policy decision will likely be either a rate hike or a hold. The remarks highlight concerns over elevated wage growth sustaining inflationary pressures, despite some easing in broader price risks.
Kocher’s comments contrast with recent market expectations leaning toward potential rate cuts. His hawkish tone, reflected in a 7.1 score on the FXS Speechtracker—above the historic average of 5.9—reinforces the ECB’s reluctance to signal early easing. Inflation risks remain a key focus, with wage deals seen as a lingering threat.
The Euro showed limited reaction, with EUR/USD trading 0.22% lower at 1.1395. Analysts suggest the ECB’s stance may limit downside for the currency while keeping upside risks for rates alive in the near term.