ECB Dolenc Says Oil Retreat Supports July Rate Pause
ECB Governing Council member Primoz Dolenc said the European Central Bank may keep interest rates unchanged in July and could wait until September to decide on its next policy move, citing a sharp decline in energy prices.
Dolenc, speaking to financial journalists on Wednesday, cautioned that the outlook remains uncertain amid high geopolitical risks in the Middle East and that market conditions could shift before the next policy meeting. His remarks soften the tone after earlier reports that a jump in June inflation had revived expectations for a rate increase this month, though Governing Council members have previously signaled that slower price growth reduces the need for aggressive action.
From the sources (25 posts)
@firstsquawkECB’S KAZAKS: CURRENTLY NO NEED FOR MULTIPLE ECB HIKES IN RUSHED WAY
@firstsquawkECB’s Kazaks: Currently No Need For Multiple ECB Hikes In Rushed Way Probability Of Negative Scenarios Have Fallen Massively Smaller Shock Reduces Risk Of Second-Round Effects As Of Today Shock And Persistence Smaller
@marketnews_feedECB’S KAZAKS: CURRENTLY NO NEED FOR MULTIPLE ECB HIKES IN RUSHED WAY PROBABILITY OF NEGATIVE SCENARIOS HAVE FALLEN MASSIVELY SMALLER SHOCK REDUCES RISK OF SECOND-ROUND EFFECTS AS OF TODAY SHOCK AND PERSISTENCE SMALLER ...
@firstsquawkECB'S LAGARDE: INFLATION RISKS REMAIN ELEVATED • ECB PRESIDENT LAGARDE SAYS FUTURE SHOCKS ARE MORE LIKELY TO PUSH INFLATION AWAY FROM THE CENTRAL BANK'S TARGET • SAYS THE DURABILITY OF THE U.S.-IRAN PEACE DEAL IS "FAR FROM ASSURED" • WAR
@ftECB does not need to fight inflation with ‘same force’ as in 2022-23, Lagarde says
@businessEurope is becoming less vulnerable to outside shocks thanks to a better financial framework and progress on the green transition, ECB chief Christine Lagarde says
@financialjuiceECB's President Lagarde: We are more likely to face shocks in the coming years that push inflation away from the target.
@financialjuiceECB's President Lagarde: The durability of the US-Iran peace deal is far from assured.
@financialjuiceECB's President Lagarde: Europe has become more resilient to shocks.
@financialjuiceECB's President Lagarde: The war has generated significant inflationary pressures.
@financialjuiceECB's President Lagarde: it is not accurate to describe the June move as an insurance hike.
@financialjuiceECB sources: rate increase remains possible, even if timing could be postponed
@financialjuiceECB sources: sharp June inflation jump may refocus July rate increase
@financialjuiceECB sources: swift oil price drop reduces pressure for July rate increase; September hike now more probable
@firstsquawkAccording to ECB sources, rate hikes remain an option even if action could come later than expected.
@firstsquawkAccording to ECB sources, an upside inflation surprise in June could reignite talk of a July rate hike.
@firstsquawkEuropean Central Bank sources: Rapid retreat in oil prices reduces July hike urgency, shifts expectations toward September.
@reutersSurprisingly quick oil price retreat eases urgency for ECB to act, sources say
@financialjuiceECB's Dolenc: If current oil prices hold, ECB may be able to wait until September to decide if more policy steps needed.
@firstsquawkECB'S DOLENC SAYS IF OIL PRICES REMAIN STEADY, ECB MIGHT DELAY POLICY DECISION UNTIL SEPTEMBER.
@financialjuiceECB's Dolenc: The situation can change quickly until next meeting.
@financialjuiceECB's Dolenc: There's no urgency to hike if energy prices stay subdued.
@financialjuiceECB's Dolenc: July ECB pause may be appropriate based on current data
@firstsquawkECB'S DOLENC SAID A JULY RATE PAUSE MAY BE APPROPRIATE BASED ON CURRENT DATA, ADDING THERE IS NO URGENCY TO RAISE INTEREST RATES IF ENERGY PRICES REMAIN SUBDUED. HE CAUTIONED THAT UNCERTAINTY SURROUNDING THE MIDDLE EAST REMAINS HIGH AND TH
@businessThe ECB may be able to keep interest rates unchanged at its next meeting, according to Governing Council member Primoz Dolenc