ECB Ready to Hike Rates Again in July If Necessary, Nagel Says

The European Central Bank signaled it is prepared to raise rates for a second straight meeting next month if the war in the Middle East creates further shock. The comment points to a hawkish policy bias and higher-for-longer rate risk, which could lift euro-area yields and pressure rate-sensitive assets. The geopolitical backdrop adds uncertainty to the ECB's near-term policy path.

Analysis

The European Central Bank signaled it is prepared to raise rates for a second straight meeting next month if the war in the Middle East creates further shock. The comment points to a hawkish policy bias and higher-for-longer rate risk, which could lift euro-area yields and pressure rate-sensitive assets. The geopolitical backdrop adds uncertainty to the ECB's near-term policy path.