Weekend - ECB's Moulin says bank in 'good position' as oil-driven inflation eases
From the original
Moulin's comments reinforce a growing sense among some Governing Council members that the tightening cycle has peaked, a message likely to support the case for investors who have already pared bets on further hikes this year. His explicit framing of the Hormuz reopening as good n
Related speeches
4 itemsWeekend - Hawkish ECB board member calls for further rate hikes despite Hormuz relief
ECB's Muller: The ECB will need a fast resolution on Hormuz to hold in June
The desk interprets the ECB's recent commentary as a signal that the central bank is poised to act if geopolitical tensions in the Strait of Hormuz persist, potentially impacting their June rate decision. Per the full note [source], ECB's Muller emphasizes the need for a swift resolution to avoid a rate hike, despite current inflationary pressures. The Eurozone's modest GDP growth of 0.1% in Q1 and declining PMIs suggest underlying economic challenges, reinforcing the ECB's cautious stance. As the market anticipates potential rate hikes, the consensus among analysts remains divided, with some projecting two hikes this year depending on oil price movements and geopolitical developments.
More like this
5 itemsRBA's Bullock says supply shocks hard for policy to manage, flags second round risk
RBNZ's Breman says higher oil prices point to firmer near-term inflation
PBOC sets USD/ CNY central rate at 6.7459 (vs. estimate at 6.6989)
ICYMI: Fed's Musalem says more rate hikes likely needed as inflation risks stay elevated