.jpg)
1 hour ago
3
Article content
(Bloomberg) — The European Central Bank is in a comfortable situation after last month’s interest-rate increase as the falling oil price eases price pressures in the euro zone, Governing Council member Emmanuel Moulin said.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
While it’s too early to say what will happen at the next two meetings in July and September, officials made clear that “we were not entering into a new cycle of hikes,” the Bank of France governor said in an interview with Bloomberg Television at the Rencontres Economiques conference in Aix-en-Provence.
Article content
Article content
Article content
“We are not into forward guidance, so we’ll decide when we’ll be there,” Moulin said. “But what we see is at this moment, at this juncture, we’re in a good position. And the balance of risk is in the right place.”
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
ECB policymakers were unanimous in backing last month’s 25 basis point rate hike as they saw surging oil prices spreading throughout the economy. But the Iran peace deal and surprisingly sharp slowdown in inflation are sowing division over what to do next.
Article content
Some policymakers see risks that the bout of energy cost pressure — even after it fades — could yet transmit to food, services and wage demands. Meanwhile, others cite the recent changing backdrop as a reason for the ECB to hold rates for now.
Article content
Investors have also pared bets on further tightening this year, while Bloomberg Economic now reckons the peak in inflation has passed.
Article content
“The fact that the oil price decreases will soften the inflation on services,” Moulin said, adding that “we don’t really see second-round effects at the moment.”
Article content
—With assistance from Caroline Connan and Nick Heubeck.
Article content
English (US)