A June ECB rate hike appears to be a done deal but what happens afterwards is up for debate. The hawks — led by the ECB’s Roberg Holzmann — want to take a break.
He spoke in an interview with Platow:
- We have no new information in July, so I would refrain from taking any further steps. I see no reason why should we take two steps in a row
- If developments continue as before, he could imagine one or two reductions in 2024 after June
- Economic momentum in the euro area is “much, much lower” than in the USA
- Says he fears a geopolitical spike in oil prices
- Idea of a dot plot is worth discussing
This article was written by Adam Button at www.forexlive.com. Source