ECB Likely to Hold Rates This Week While Maintaining Hawkish Stance, Nuveen Strategist Says

According to Laura Cooper, Nuveen's global investment strategist, the European Central Bank is likely to hold interest rates steady at its meeting this week while maintaining a hawkish policy tone, following its rate increase in June.

Cooper noted that the ECB will remain open to further tightening if geopolitical tensions reignite energy price increases. She pointed out that inflation remains more moderate than expected, with purchasing managers index (PMI) pricing sub-indices showing little sign of re-acceleration, while producer price data confirms upstream cost pressures are easing.