ECB Comments Suggest More Hikes Could be on the Horizon

Dow Jones
51 mins ago

1251 GMT - The European Central Bank could be set to raise interest rates even further following Thursday's hike, Kamil Kovar at Moody's Analytics says. The central bank wasn't clear whether it would raise rates again later this year, but an upward revision to 2027-28 inflation forecasts has emphasized the scale of the eurozone's inflation dilemma, Kovar adds. The ECB also pointed out the resilience of the economy despite this year's jump in energy prices, he adds. "Both of these comments suggest that the governing council is open to raising rates further, increasing the odds of a third hike, which we now see as even odds, even if energy prices moderate from this week's levels," Kovar says.

 

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