An ECB rate hike in June appears to be a done deal, but what happens next is up for debate. The hawks – led by the ECB’s Roberg Holzmann – want to take a break.
He spoke in an interview with Platow:
- We have no new information in July, so I will refrain from taking further action. I see no reason why we should take two steps in a row
- If developments continue as before, he could imagine one or two reductions in 2024 after June
- Economic dynamics in the Eurozone are “much, much lower” than in the United States
- He says he fears a geopolitical surge in oil prices
- The idea of a dot plot is worth discussing
This article was written by Adam Button at www.forexlive.com.
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