Shafaqna English– The ECB’s governing council members are ready to approve a rate hike at their September meeting to counteract the negative economic consequences of the Iranian conflict, but they are reluctant to provide any strong indications about further policy tightening thereafter, according to three individuals familiar with the deliberations.
The ECB began its tightening cycle in June with a rate increase—its first in nearly three years—as part of a strategy to contain the risk that war-driven energy price shocks would spill over into the wider economy and sustain upward pressure on consumer prices across the euro area.
Source: Reuters