Market Analysis: The European Central Bank's rate hike moment has arrived, with a risk of further action in July

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Golden Finance reports that on June 11th, analysts at the Bank of Montreal in Canada stated that some members of the European Central Bank's Governing Council might be thinking: "We've waited long enough. Let's take action!" They are indeed likely to act, meaning they will raise interest rates on June 11th. Since the outbreak of the Iran war, other central banks, such as the Reserve Bank of Australia and the Norges Bank, have already tightened monetary policy. But the European Central Bank will be the first among the G7 countries to do so. The ECB previously described inflation and monetary policy in the Eurozone as "in good shape," but now, the situation is entirely different. Concerns about the duration of the Iran war, the sustainability of potential peace agreements, and how these factors will influence inflation expectations and wage demands are prompting the ECB to shift toward tightening policies. Since the last meeting, inflation in the Eurozone has not eased. To make matters worse, the risk of economic stagnation is increasing. The ECB must proceed cautiously, but there remains a risk of further rate hikes, possibly as early as July. (Jin10)
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