According to Jin10, European Central Bank Governing Council member Klaas Knot (Editor: name corrected from Kazaks per context) stated on May 14 that if rising oil prices push inflation expectations off anchor, the ECB will be forced to raise borrowing costs. “Oil prices are rising and we see this gradually pushing up inflation. If inflation expectations begin to deteriorate, the ECB will be forced to hike,” he said. Markets and economists anticipate the ECB will raise rates by 25 basis points at its June meeting.
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