ECB's Kazimir says policy tightening in June is all but inevitable

Kazimir's statement indicates that the ECB is preparing for inevitable policy tightening in response to rising inflation pressures, particularly from energy costs.

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ECB's Kazimir says policy tightening in June is all but inevitable

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  • Europe is increasingly likely to face a prolonged period of broad-based price increases, with higher energy prices set to spread to the rest of the economy
  • Does not comment on any fixed path for rates
Context

This suggests a shift towards a more hawkish stance, which may impact market expectations for future rate hikes and affect EUR and fixed income dynamics. While he refrained from outlining a specific rate trajectory, the mounting inflationary concerns could lead to a reassessment of the ECB's guiding principles and monetary policy stance.

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