Another ECB Rate Hike by Year End no Longer a Tail Risk
Dow Jones
Yesterday
1250 GMT - Another interest-rate hike by the European Central Bank before the end of 2026 is no longer a tail risk, J.P. Morgan Private Bank's Patrick Ernst says in a note after the ECB's quarter-point policy tightening. Driven by the latest escalation in the Middle East conflict, oil and gas prices have moved materially higher, bonds have sold off, and expectations for further central bank tightening have firmed, the macro investment strategist says. The ECB moved as anticipated, but what accompanied that rate decision matters more, he says. In keeping the door open to further tightening, policymakers made clear that an energy-led inflation risk is still very much in play, he adds.
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