ECB policymaker Žigman says September decision will be based on data and projections
- Uncertainty remains high
- Impact of energy shock will only be seen in the coming months
- Intensity and duration of the shock are crucial
- ECB's goal is to ensure medium term inflation remains stable around 2%
- The decision will be made based on the data and projections we will receive in the coming weeks
ECB's Žigman stressed that uncertainty about the inflation outlook remains high and warned that the full effect of the recent energy price shock will only become apparent over the coming months.
He highlighted that intensity and duration of the energy shock will be key factors in determining the impact on the Eurozone inflation outlook. He reiterated that the ECB's goal is to ensure that inflation returns sustainably to its 2% medium-term target.
Regarding the September meeting, Žigman said that the decision will be based on the data and macroeconomic projections they will receive in the coming weeks. The majority of policymakers are leaning towards a rate hike but they are willing to hold rates steady in case the US-Iran war ends and inflation doesn't surprise to the upside.
The market is pricing a 67% chance of a rate hike in September which is lower than the 75% seen after Thursday's ECB decision. The cautious policymakers' comments and the expectations for a potential de-escalation led to a slightly dovish repricing.
This article was written by Giuseppe Dellamotta at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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