ECB Rate Hike in September Likely, Pricing More Hikes Looks Excessive
Dow Jones
Jul 24
0515 GMT - Unless oil prices fall significantly over the coming weeks, a rate hike by the European Central Bank in September is highly likely, while market pricing of further hikes might prove excessive, Pictet Wealth Management's Nadia Gharbi says in a note. "We continue to believe current market pricing is exaggerated... given the absence of second-round effects, the loosening of the labour market and the underlying weakness in the economy, which is being exacerbated by the energy shock," the senior economist says. Money markets currently price in almost 70bps of additional tightening by June 2027, according to LSEG. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
July 24, 2026 01:15 ET (05:15 GMT)
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