Euro Zone: ECB Signals No Pre-Set Rate Path, - Minutes.

ECB policymakers agreed to avoid providing guidance on the future path of interest rates following June's first rate hike since 2023, citing elevated economic uncertainty, according to the latest meeting minutes. Officials stressed that communication should remain neutral, neither signaling a series of further hikes nor suggesting the move was a one-off. The Governing Council reaffirmed its data-dependent, meeting-by-meeting approach and commitment to returning inflation to its 2% target, while warning that persistently high energy prices could fuel broader inflation. Policymakers said they would closely monitor inflation, wages, demand, financial conditions, and market developments. Markets now see a 70% chance of a September rate hike, as the latest oil price surge following renewed US-Iran strikes has outweighed the relatively dovish tone struck by ECB officials at the early-July Sintra forum, where they had signaled less urgency for additional tightening.