18 Jul 2024

Global currency markets are stabilising and the euro remains essentially unmoved after the European Central Bank left its main policy settings unchanged while avoiding telegraphing a move in September. In a mostly unmodified statement, officials said “domestic price pressures are still high, services inflation is elevated and headline inflation is likely to remain above target well into next year,” while acknowledging that most measures of underlying price pressures “were either stable or edged down in June”. Potentially foreshadowing comments from President Lagarde during the press conference, policymakers inserted a sentence warning market participants against inferring signals about the future direction...