ECB to Hold Rates in July, Maintain Tightening Bias – Nordea
Nordea expects the European Central Bank to keep policy rates unchanged at the July meeting, citing lower June inflation and volatile Middle East developments. The move is described as a pause rather than a shift in the bank's tightening stance.
Nordea's Jan von Gerich forecasts that the European Central Bank will leave policy rates unchanged at its July meeting, characterizing the decision as a pause rather than a pivot in the ECB's monetary policy stance.
The forecast is supported by two key factors: June inflation came in lower than expected, reducing the urgency for immediate action, and ongoing volatility in the Middle East adds to uncertainty. Despite the pause, Nordea maintains that the ECB's tightening bias remains intact, suggesting the bank is not yet ready to signal an end to its rate-hiking cycle.
Market participants will watch for any shifts in forward guidance during the upcoming meeting, with the EURUSD likely to react to the policy decision and accompanying remarks.
Source: FXStreet Forex News