ECB's Dolenc says ECB will raise rates if inflation has a longer-lasting effect
Context
ECB board member Dolenc's comments suggest a potential shift towards a more hawkish stance if inflation proves persistent. This could influence market expectations around future rate hikes, impacting not only EUR but also broader fixed-income markets as investors reassess their outlook on the ECB's policy trajectory. Stay alert for shifts in rate path pricing and cross-asset reactions as this unfolds.
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