Modest ECB Rate Hike Would Limit Economic Pain, Stournaras Says

The ECB is expected to keep interest rates unchanged on Thursday as it calibrates policy against the economic fallout from the Iran war. The decision is a monetary-policy hold, but the geopolitical backdrop raises uncertainty around growth and inflation. Market impact is likely broad given the ECB’s role in euro-area yields and risk assets.

Analysis

The ECB is expected to keep interest rates unchanged on Thursday as it calibrates policy against the economic fallout from the Iran war. The decision is a monetary-policy hold, but the geopolitical backdrop raises uncertainty around growth and inflation. Market impact is likely broad given the ECB’s role in euro-area yields and risk assets.