ECB's Radev says the ECB must be ready to act if inflation persists, sees a rising likelihood of adverse scenario but too early to say if April rate hike is needed

The ECB's Radev highlights a growing concern around inflation persistence, indicating that the central bank is on alert for potential adverse scenarios.

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Newsquawk Daily European Opening News - 7th April 2026

Indian Foreign Secretary is to visit Washington D.C. April 8th-10th

ECB's Radev says the ECB must be ready to act if inflation persists, sees a rising likelihood of adverse scenario but too early to say if April rate hike is needed

Japanese Leading Economic Index Prel (Feb) 112.4 (Prev. 112.1)

Japanese Coincident Index Prel (Feb) 116.3 (Prev. 117.9)

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  • Inflation expectations at risk of rising too quickly.
Context

This suggests that while they're not committing to a rate hike yet, the acknowledgment of rising inflation expectations could signal a shift in the ECB’s stance if conditions deteriorate. Traders should watch for how this plays into interest rate expectations and the EUR's reaction in the market.

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