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.
