- ECB officials are paving the way for another rate hike as soon as October, with euro-area inflation barrelling toward 4%.
- The ECB is already the most hawkish central bank within the G7 following two hikes since the Iran war sent energy costs soaring.
- The euro-area economy is holding up better than anticipated, giving policymakers room to continue raising interest rates.
Quotes
“European Central Bank officials are preparing the ground for further monetary tightening, signaling another move is possible as soon as October to tackle intensifying inflation pressures.”