Monday, 17 August 2026Europe · Analysis
Independent · Brussels & Berlin
Person
Governor of the Oesterreichische Nationalbank, Oesterreichische Nationalbank
Renewed US-Iran strikes over the Strait of Hormuz have pushed Brent crude above $85 a barrel, scrambling market expectations for the ECB's July 22 meeting and reviving fears of a second inflation spike.
The single currency reached its highest level against the dollar since 2021 while Trump welcomes the greenback's decline. Economists are split on whether the eurozone can absorb another competitiveness shock.
Central bank officials are debating whether to make euro funding more widely available to foreign counterparts, a move that would mirror China's swap-line network but faces collateral constraints and Governing Council scepticism.
The European Central Bank kept its key rate unchanged for a third meeting, citing resilient growth and inflation near target, while warning that trade tensions and geopolitical risks cloud the outlook.
The newsletter
Delivered to your inbox on the days we publish. No daily digest, no push notifications, no advertising.