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2026-07-19 04:06:12
The European Central Bank (ECB) remains on high alert for further rate hikes, preparing for potential increases. While it is highly likely the ECB will temporarily slow the pace of its second round of rate hikes next week, it has not completely ruled out a September increase. Previously, due to a sharp rise in energy prices, the central bank raised borrowing costs in June. At that time, officials stated that peace talks between the US and Iran could mitigate the impact of the conflict on Eurozone prices. However, Greek central bank governor Yannis Stournaras stated that with the current escalation of the conflict and the uncertain future of shipping in the Strait of Hormuz, inflation risks have returned to their initial levels. The latest economic data released after the June interest rate decision meeting is insufficient to prompt the central bank to immediately raise rates this Thursday. Currently, oil and gas price trends are largely in line with policymakers' baseline expectations released last month, and the decline in inflation is better than anticipated. Furthermore, the ECB's bank credit survey results, to be released on Tuesday, are unlikely to significantly alter the current policy stance.
