ECB Official Links Rate Hikes to Secondary Oil Effects
Luis de Guindos says ECB rate hikes depend on how oil price surges impact other goods. Markets now see a 70% chance of a third rate increase by December.
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The European Central Bank's decisions regarding future interest rate increases will hinge on how the war-driven surge in Brent Crude Oil and chemical costs impacts broader price levels, according to Vice President Luis de Guindos. Speaking at an event in Madrid, De Guindos noted that while the central bank cannot prevent the initial inflationary shock caused by geopolitical conflict, it remains vigilant regarding secondary impacts on the economy.
The rate hike will depend on second-round effects.
