Simona Mocuta, chief economist at State Street Investment Management, says ECB
rate hikes are likely to have limited effect. She warns monetary tightening may
weaken growth rather than curb inflation and is unlikely to offset supply‑shock
driven inflation. With wage inflation well contained and consumer confidence and
spending weak, scope for second‑round inflation effects is limited. The firm
still assesses the highest probability is for another ECB hike this autumn.