Europe
ECB's Demarco signals rate hikes likely as oil shock persists
Bank of Malta governor breaks with dovish colleagues to warn that even a ceasefire may not lower energy prices enough to avoid tightening at June meeting.
Person
Alexander Demarco
Governor of the Bank of Malta and member of the ECB Governing Council, European Central Bank
What we have reported
- Warned that prolonged conflict and infrastructure damage will keep oil prices elevated, making rate hikes likely at the June 11 meeting.
- Suggested US tariffs would likely have a deflationary impact, reviving pre-pandemic low-rate stagnation dynamics.
Coverage
Europe
ECB cuts rates for seventh time as trade war fears eclipse inflation fight
Benchmark rate falls to 2.25 percent, its lowest since November 2022, as Trump tariffs force policymakers to prioritise growth over lingering price pressures.
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