ECB Eyes July Rate Hike Amid Rising Services Inflation

ECB may hike rates again as early as next month, warns policymaker Pierre Wunsch, as services inflation surges despite falling energy prices. Even with the Iran deal cooling oil costs, Wunsch argues another quarter-point increase could be necessary to stay ahead of inflation — and rates might later be lowered if conditions improve. The bank’s recent hike, its first in three years, was defended as timely amid rising inflation and uncertainty, even if it slightly reduced real rates. Wunsch calls for clearer, conditional guidance from the ECB — not just “meeting by meeting” decisions — and urges vigilance on wage growth and sectoral inflation trends. The final call rests on incoming data, but Wunsch’s stance signals a cautious, inflation-first approach. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/c6572f4df11142db