ECB Moves to Upper End of Neutral Rate Range, Leaves Door Open for Further Hike
Dow Jones
Yesterday
1249 GMT - By raising interest rates as expected, the European Central Bank is "acting decisively to bring rates to the upper end of what they view as the neutral range," Fidelity International's Conor Parle says in a note. The door is open to a further hike to bring rates into mildly restrictive territory and to reaffirm their commitment to price stability, the eurozone economist says. Recent resilient macro data will give the ECB comfort as they look to get ahead of above-target inflation becoming entrenched, Parle says. Factors such as the German fiscal rollout have supported growth even as headwinds relating to energy prices pose a threat. "Higher gas and fuel prices will keep the ECB vigilant to a broadening of price pressures."
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