Capitole Macro: ECB Gives Few Hints on Its Next Move

Jack Allen-Reynolds, an economist at Capitole Macro, said the European Central Bank's decision to keep rates unchanged was not surprising and that the accompanying press release gave no clear signal on its next move. According to Jin10, he said the comment on policy prospects remained neutral and noted that energy prices were close to the ECB's baseline assumption. Allen-Reynolds said the ECB may keep rates unchanged this year if energy prices fall in the coming months, but that it is very likely to raise rates again if energy prices keep rising. He also said ECB President Christine Lagarde may give a hint at a news conference if policymakers expect a rate hike in September.