ECB Likely to Hold Rates Steady This Week, Nuveen Strategist Says

Nuveen global investment strategist Laura Cooper said the European Central Bank is likely to leave interest rates unchanged at this week’s meeting while keeping a mildly hawkish tone. According to Jin10, Cooper said the ECB would remain open to further tightening if renewed tensions push energy prices higher. She said inflation is more moderate than feared, there are few signs of reacceleration in the pricing component of the purchasing managers' index (PMI), and producer price data confirm that upstream cost pressures are easing. Cooper added that these factors justify no move this month, while a renewed disruption to commodity supply could revive energy price pressures as the ECB gains confidence in the disinflation path.