Fidelity International euro-area economist Conor Parle said the ECB left rates unchanged at today’s meeting, but the pause is likely temporary amid rising commodity prices and renewed Middle East tensions. Natural gas had been climbing before the recent escalation as demand to rebuild below-normal inventories ahead of winter and higher imports abroad continue to support price pressure. With the euro-area economy showing resilience, Parle said the ECB is likely well positioned to raise rates by 2

Fidelity International euro-area economist Conor Parle said the ECB left rates unchanged at today’s meeting, but the pause is likely temporary amid rising commodity prices and renewed Middle East tensions. Natural gas had been climbing before the recent escalation as demand to rebuild below-normal inventories ahead of winter and higher imports abroad continue to support price pressure. With the euro-area economy showing resilience, Parle said the ECB is likely well positioned to raise rates by 25 bps after it updates forecasts in September, signalling continued commitment to price stability.