Ebury's Matthew Ryan Says ECB September Rate Hike Is Nearly Certain as Gas Prices and Inflation Rise

According to Jin10, Ebury market strategy head Matthew Ryan said rising natural gas prices and eurozone inflation climbing to 3.3% in August have made a September rate hike by the European Central Bank almost certain. He said August data still showed no clear signs that surging energy prices were feeding into core inflation, with core inflation falling to 2.4% from 2.5% in July and returning to the level seen in February before the Iran war broke out. Ryan added that while a September hike looks almost certain, it is far from certain that the ECB will push rates further into restrictive territory afterward, and he said this may limit further gains in the euro against the U.S. dollar as markets have already priced in aggressive expectations for additional hikes.