Emmanuel Moulin cautions against committing to a June rate move, citing inflation risks and insufficient economic data.
Emmanuel Moulin, the incoming ECB governor, stated it is too early to determine whether the European Central Bank will adjust interest rates at its June meeting. He emphasized the need for patience and a more comprehensive set of economic indicators before making any decisions.
Markets are currently pricing in an 85% probability of a rate hike in June, contingent on inflation dynamics and geopolitical factors such as oil prices. Moulin highlighted concerns over second-round inflation effects, where wage growth and domestic demand could entrench higher prices in the eurozone economy.
Other ECB policymakers have suggested a rate hike is likely unless significant disruptions, like the reopening of the Strait of Hormuz, ease oil prices before June.