Fidelity International euro-area economist Conor Parle said the ECB raised rates
as expected to what Fidelity views as the top end of the neutral range and left
the door open to further hikes to bring policy into mildly restrictive
territory. Parle said recent resilient macro data strengthens the case for
acting before above-target inflation becomes entrenched. He flagged German
fiscal stimulus as growth-supportive but warned rising gas and fuel prices pose
upside risks to inflation and will keep the ECB vigilant for broadening price
pressures.
