ECB Governing Council member Kocher warned that if oil remains near $100/bbl
through year-end the ECB may need to raise rates further. After the ECB's second
rate increase on Thursday, Kocher said inflation risks are higher than a few
months ago amid persistent Middle East tensions and elevated energy costs. Since
the breakdown of a U.S.-Iran ceasefire in early July, oil has risen over 45% to
above $100/bbl; European natural gas has nearly doubled since June to about
€80/MWh. Kocher said an adverse oil/gas path would have to be factored into
monetary policy and would further raise inflation risks.