ECB: Focus on expectations as Oil shock bites – Commerzbank

Commerzbank’s Chief Economist Dr. Jörg Krämer argues that the European Central Bank should respond to the recent Oil price shock by prioritizing long-term inflation expectations. He notes that higher energy costs are both lifting inflation and weighing on growth, creating a policy dilemma. Commerzbank’s Chief Economist Dr. Jörg Krämer argues that the European Central Bank should respond to… Commerzbank’s Chief Economist Dr. Jörg Krämer argues that the European Central Bank should respond to the recent Oil price shock by prioritizing long-term inflation expectations. He notes that higher energy costs are both lifting inflation and weighing on growth, creating a policy dilemma. ECB: Focus on expectations as Oil shock bites – Commerzbank · FundoraPro News

Commerzbank’s Chief Economist Dr. Jörg Krämer argues that the European Central Bank should respond to the recent Oil price shock by prioritizing long-term inflation expectations. He notes that higher energy costs are both lifting inflation and weighing on growth, creating a policy dilemma. Krämer concludes that if expectations drift above 2%, the ECB should raise rates, potentially as early as its late-April meeting.Oil shock complicates ECB policy choices"The ECB faces… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline. ECB: Focus on expectations as Oil shock bites – Commerzbank · FundoraPro News