MHA Analyst Joe Nellis Says ECB Rate Hike Shows Inflation Pressure Has Become Structural

According to Jin10, MHA analyst Joe Nellis said the European Central Bank's latest rate hike, as expected, shows that inflation pressure has become structural. He said the ECB has concluded that Europe and the global economy are no longer facing only a short-term inflation shock, that European interest rates remain below those in the United Kingdom and the United States but the gap is narrowing, and that the move is expected to squeeze households and businesses. Nellis said the hike still appears necessary because August inflation reached 3.3% and oil prices returned above $100 per barrel, while an orderly resolution of the Middle East conflict would help ease inflation to some extent even though some long-term effects would persist after hostilities end.