ECB's Kazaks says the central bank has the “luxury” of not needing to rush to raise interest rates and he sees no rush to respond to higher energy prices driven by Iran war, according to FT

Kazaks' comments suggest that the ECB is adopting a more measured approach to rate hikes, indicating they feel comfortable with current policy despite external pressures like rising energy prices. This could signal to markets that aggressive tightening is not imminent, potentially easing concerns around inflation and influencing risk sentiment across asset classes, particularly in the EUR and fixed income markets.