Muller Says ECB Is in a “Favorable Position” as Inflation Eases After Oil Price Drop

An ECB Governing Council member, Muller, said inflation data had improved and the European Central Bank was now in a “favorable position” after raising interest rates last month. According to Jin10, Muller said on Saturday that data showed inflation had fallen as oil prices plunged. He said the ECB does not provide forward guidance and therefore would not disclose what it would do in July. Muller said the rapid decline in oil prices had brought relief and put the ECB in a more advantageous position on interest-rate decisions. He also said the ECB’s 2.25% interest-rate level was “very low” compared with other central banks, and that the June rate hike was “reasonable” under any circumstances. He added that the ECB’s communication at the time indicated the rate increase was not the start of a new tightening cycle.