ECB Rate Hike Risk Returns as Oil and Middle East Tensions Rise – ING
ING's Carsten Brzeski argues the ECB is likely to hold rates next week but a surprise hike cannot be ruled out due to renewed Middle East tensions and rising oil prices, which have restored the pre-June macro backdrop.
According to ING's Carsten Brzeski, the European Central Bank is expected to keep rates unchanged at its upcoming meeting, but a surprise rate hike is still possible. The analyst points to renewed tensions in the Middle East and the consequent rise in oil prices as factors that have brought back the macroeconomic environment seen before the June policy decision.
This development reintroduces upside inflation risks, making a potential tightening move more plausible. Markets will closely monitor the ECB's tone for any hawkish shift.
Source: FXStreet Forex News