19:34 29 July 2026
ECB holds watch
The European Central Bank is keeping a close eye on wage developments as it weighs its next interest rate decision, with new forecasts showing negotiated wages across the eurozone are expected to rise 2.7% in early 2027, only slightly above late-2026 levels and well below the post-pandemic peak of 5.2%. ECB President Christine Lagarde said the figures reinforce the central bank's view that wage pressures are gradually easing and do not yet point to a wage-price spiral capable of reigniting inflation.
However, policymakers remain cautious, with some Governing Council members warning that inflation risks have not disappeared and that another rate increase could still be considered at the September meeting if price pressures fail to moderate. Financial markets are expected to closely monitor upcoming inflation and labor market data, as these will play a key role in shaping the ECB's monetary policy outlook for the remainder of the year.
Source: pb.pl
