ECB's Villeroy: Not seeing sufficient signs yet to raise rates
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ECB's Villeroy stated that there are not yet sufficient signs to raise interest rates, despite the ECB's recent decision to maintain the deposit rate at 2.00%. Policymakers are adopting a data-dependent approach amid rising inflation risks and uncertainty due to the Middle East conflict. While longer-term inflation expectations remain stable, short-term pressures have increased. Officials suggest that a June rate hike is possible if inflation does not improve, indicating a potential shift towards tightening monetary policy depending on future data.
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