ECB Policymakers Call for Vigilance on Interest Rates Amid Geopolitical Risks and Rising Energy Costs

European Central Bank policymakers, including Governing Council member Joachim Nagel, called for vigilance in setting interest rates, noting increased geopolitical uncertainty and rising energy costs from renewed Middle East fighting. While the ECB raised rates in June, signals suggest a further hike is not urgent for July, with officials like Piero Cipollone and Martin Kocher stating no second-round inflation effects have materialized yet. Nagel emphasized maintaining a vigilant stance and acting decisively if necessary.