ECB’s Santos Pereira says euro zone inflation is not spreading beyond energy
From the original
The comments support the view that the ECB can hold its nerve on an energy-led price shock, which should limit pressure for tighter policy in the near term and leave the euro without a fresh rate-driven boost. His attribution of higher yields to fiscal issues rather than inflatio
Related speeches
4 itemsECB policymakers agree: Inflation in Eurozone to remain high amid energy crisis - FXStreet
Rates Spark: EUR rates cannot follow a dovish US
The key takeaway from the source commentary is that Eurozone rate dynamics are increasingly decoupling from U.S. trends, particularly as Eurozone inflation remains stubbornly high amidst rising energy prices. Per the full note from ing-think, while U.S. rates have become dovish due to easing inflation metrics, the ECB's stance is influenced more by the spike in oil prices, which recently drove 2-year euro swap rates close to 3%. This divergence complicates the outlook for EUR rates and highlights the critical role of energy markets in shaping Eurozone monetary policy, suggesting a potential delay in any dovish action from the ECB until Eurozone inflation shows clearer signs of moderation.
More like this
5 itemsJapan’s 2.4% underlying inflation puts a higher BoJ terminal rate in play
PBOC sets USD/ CNY reference rate for today at 6.7180 (vs. estimate at 6.6758)
PBOC is expected to set the USD/CNY reference rate at 6.6758 – Reuters estimate
ECB preview: MUFG sees October hold, two hikes ahead. See EUR/USD year end at 1.12