(Bloomberg) -- The risk of new inflation jolts means that the European Central Bank has to stay flexible on interest rates, according to Executive Board...
-- The risk of new inflation jolts means that the European Central Bank has to stay flexible on interest rates, according to Executive Board member Isabel Schnabel .“We could be threatened by new price shocks,” Schnabel said at an awards ceremony in Kiel, Germany, on Sunday. “That’s why we are on alert and haven’t precommitted to a fixed rate path, but are staying data dependent.
The ECB doesn’t see consumer-price growth reaching the 2% target until the final quarter of 2025, according to projections published earlier this month. Inflation accelerated to 2.6% in May, though a Nowcast by Bloomberg Economics currently suggests a reading of 2.2% for June. “Now that inflation is going back, we’re seeing that wage growth is also gradually easing, and there are no indications of a wage-price spiral like we saw in the 1970s,” she said. “That’s because we’ve manage to anchor inflation expectations of companies and households at our inflation goal.”Former president Donald Trump's "Truth Social" meme stock is in free fall, sliding 15 percent after Thursday's close, accelerating a weekslong decline.
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