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ECB policymaker Escrivá says policy is still not restrictive

Escrivá tied the view to concerns about persistent energy prices and potential second-round inflation effects.

Reported · Written up by our desk · Central Banks

European Central Bank policymaker José Luis Escrivá said on Tuesday that the ECB is still not in a restrictive policy territory, according to Reuters, as summarized by FXStreet.

FXStreet reports that Escrivá's comments were framed as a near-term signal that Euro interest rates do not need to be restrictive, while also warning that the global rise in long-term rates and persistently high energy prices could add pressure on European borrowing costs.

The piece also notes that Escrivá highlighted inflation vigilance, including the risk of second-round effects from high energy prices, creating a mixed message for bond markets even as current policy levels were described as not restrictive.

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