ECB policymaker stresses focus on economic data over short-term geopolitical risks amid Middle East tensions and oil price volatility.
European Central Bank Governing Council member Pablo Escriva stated the ECB will not alter monetary policy in response to every geopolitical event. He cited ongoing Middle East instability but emphasized monitoring broader economic impacts, particularly oil prices and inflation risks.
Escriva noted recent oil price increases have partially reversed but warned markets may underestimate supply constraints. He highlighted Eurozone economic resilience, with stronger demand and activity, while stressing the need to assess incoming data at each meeting.
Traders briefly priced in a 40% chance of a July rate hike following US-Iran escalation, later adjusting to 36% as tensions eased. Hawkish bets persist due to elevated oil prices and inflation concerns.