ECB’s Kazaks: Rise in energy prices does create upside risk to inflation

  • Recent energy price rise is structural, not a short-term transitory rise
  • Given current outlook, rate cut expectations around middle of 2024 are too early
  • Rates will need to remain restrictive for quite a while

In his words, the mix of the rise in energy prices and lower inflation in recent months vindicates pausing i.e. not enough to hike again. But I guess they will twist the story however it needs to be to fit with their narrative. What else is new, am I right?

This article was written by Justin Low at Source