Analyst: ECB Expected to Hold Rates Steady Amid Moderate Inflation

ME News reports that on July 22 (UTC+8), Laura Cooper, Global Investment Strategist at Nuveen, stated in a report that following the June rate hike, the European Central Bank is likely to hold rates steady at this week’s meeting but maintain a hawkish tone. Cooper noted that if renewed tensions drive up energy prices, the ECB would remain open to further policy tightening. She added that inflation has been milder than feared, with the PMI pricing component showing little sign of renewed acceleration, and producer price data confirming that upstream cost pressures are easing. “These factors provide a rationale for holding steady this month,” she said, noting the complication lies in renewed disruptions to commodity supplies, which could reignite energy price pressures just as the ECB is gaining confidence in the path of inflation’s decline. (Source: BlockBeats)