ECB Vice President VUJCIC said market pricing for further ECB rate hikes has
been driven mainly by rising energy prices, but policymakers will judge next
moves on broader economic indicators rather than energy alone. He warned that if
inf stays elevated through the autumn and hits household incomes and consumption
it would weigh on GDP; the ECB will monitor incoming months and adjust policy
accordingly. Global bond yields have risen to pre-financial-crisis levels amid
higher inf and rate expectations plus large government and tech-sector issuance.
VUJCIC said those moves do not pose financial-stability risks because euro-area
banks are well capitalized and liquidity is ample.
