ECB Better Off to Wait Than Rush Into Rate Action, Demarco Says

ECB Governing Council member Alexander Demarco said the central bank should wait longer before raising borrowing costs because uncertainty over the Iran war remains high. The comments reinforce a cautious, wait-and-see stance on eurozone rate policy amid elevated geopolitical risk. The signal is mildly negative for near-term tightening expectations and could weigh on euro yields.

Analysis

ECB Governing Council member Alexander Demarco said the central bank should wait longer before raising borrowing costs because uncertainty over the Iran war remains high. The comments reinforce a cautious, wait-and-see stance on eurozone rate policy amid elevated geopolitical risk. The signal is mildly negative for near-term tightening expectations and could weigh on euro yields.