ING economist Karsten Brzeski says the ECB left rates unchanged mainly because recent energy price rises have not produced broad second‑round price effects, while rising bond yields have already tightened financial conditions. "The bond market has already taken over the ECB's work," he said. He added that, despite rising inflation and resilient growth, higher borrowing costs have reduced the urgency for further ECB hikes. Most market‑relevant, ECB President LAGARDE said she will step down before

ING economist Karsten Brzeski says the ECB left rates unchanged mainly because recent energy price rises have not produced broad second‑round price effects, while rising bond yields have already tightened financial conditions. "The bond market has already taken over the ECB's work," he said. He added that, despite rising inflation and resilient growth, higher borrowing costs have reduced the urgency for further ECB hikes. Most market‑relevant, ECB President LAGARDE said she will step down before her term ends; the two leading successors are Spain's de Cos and the Netherlands' Knot, both viewed as highly experienced in monetary policy.