ECB's de Mälko: No Rush for Further Rate Hikes as Oil Prices Fall Sharply

According to Jin10 data, on July 1, ECB Governing Council member Fabio Panetta de Mälko stated that the European Central Bank should not rush to further rate hikes given the sharp decline in oil prices. He noted that energy costs have fallen rapidly in recent weeks following the June rate increase, strengthening the case for pausing tightening. De Mälko said lower energy costs should quickly ease inflation expectations and reduce wage growth pressures. He added that the ECB should wait for the next forecasting round rather than hastily hike again, risking unnecessary damage to economic growth, unless second-round inflation effects, de-anchored expectations, or stronger wage demands emerge.
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