Helaba: Energy Price Rise Worries the ECB

Helaba analysts said the recent escalation in the Arabian Gulf region and rising energy prices are unlikely to leave central bank officials satisfied. According to Jin10, the European Central Bank will announce its monetary policy decision later today. However, there are still no clear signs that the ECB is about to raise interest rates, the analysts said. They are waiting for market signals to determine whether the next meeting in September will send a signal of a rate hike. Money markets currently expect the ECB to raise rates by 21 basis points in September. Helaba analysts said the wording of the ECB statement, which says the Governing Council will not pre-commit to a specific interest-rate path, is unlikely to change significantly, and they expect the ECB to continue making decisions on a meeting-by-meeting basis.