ECB Says It Can Delay Rate Hikes as Oil Prices Fall
ECB Governing Council member Piero Cipollone De Marco said the central bank can delay its next interest-rate decision until after it releases a new round of economic projections, indicating that policymakers are willing to pause further tightening as oil prices retreat. The European Central Bank raised its key policy rate for the first time in nearly four years last month, citing persistent inflation pressures across the euro zone.
De Marco's comments align with ECB Governing Council member Primož Dolenc, who said earlier Monday that the bank can likely keep rates on hold in July if energy prices remain subdued. The recent softening in oil prices reduces immediate urgency for policymakers, though the central bank continues to monitor underlying inflation that remains above its 2% target.
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