ECB policymaker Dolenc said if Middle East tensions do not escalate before the
next policy decision and energy prices remain stable, the ECB could keep rates
unchanged at the next meeting. Speaking at the Sintra Forum, he said a pause in
tightening is reasonable if energy prices hold, commodity volatility does not
spread and second‑round inflation effects do not materialize. Oil and gas
remaining subdued would remove the need to rush further tightening, he added,
and based on current data it may be appropriate to wait until before September.
He cautioned there are still weeks to the next decision and geopolitical risk
remains elevated after a recent uptick in hostilities.
