Daiwa Capital Markets: Oil Price Decline Eases Urgency of ECB Policy Debate

Investors are expected to focus on the European Central Bank’s minutes from its June meeting, due to be released on Thursday. According to Jin10, analysts at Daiwa Capital Markets said that the drop in oil prices since that meeting has reduced the urgency of debate over future policy. The analysts noted that at the June meeting the ECB raised its inflation forecasts and delivered its first interest-rate hike since 2023. They added that the subsequent decline in energy prices has arguably lowered the relevance of that meeting for future policy discussions. They also said policymakers at a meeting held last week in Sintra indicated they were not in a hurry to tighten policy again at the July meeting.