ECB Dampens Near-Term Rate Hike Bets
Euro zone officials have dampened expectations for near-term interest rate hikes. Policymakers noted that core inflation trends remain stable and second-round wage effects are negligible despite high energy costs.
ECB policymakers dampened near-term rate hike bets on Thursday, arguing that underlying price trends remain benign despite inflation projections running above the 2% target. The cautious stance contrasts with market pricing for two or three additional rate increases following summer hikes. Investors are recalibrating monetary policy expectations as officials signal comfort with core inflation dynamics.
