{"id":731755,"date":"2026-06-12T11:48:09","date_gmt":"2026-06-12T11:48:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/731755\/"},"modified":"2026-06-12T11:48:09","modified_gmt":"2026-06-12T11:48:09","slug":"ecbs-kocher-says-rate-hike-was-intended-to-help-stabilize-inflation-expectations","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/731755\/","title":{"rendered":"ECB&#8217;s Kocher says rate hike was intended to help stabilize inflation, expectations"},"content":{"rendered":"<p data-start=\"27\" data-end=\"265\" data-v-6bf95c48=\"\">ECB&#8217;s Kocher said yesterday&#8217;s rate hike is intended to help stabilize inflation as the Middle East conflict continues to push up energy and commodity prices.<\/p>\n<p data-start=\"267\" data-end=\"614\" data-v-6bf95c48=\"\">Kocher warned that rising energy costs are weakening consumer purchasing power, discouraging investment, and increasing the risk of second-round inflation effects. However, he noted that inflation is not expected to return to the extreme levels seen in 2022\u20132023.<\/p>\n<p data-start=\"616\" data-end=\"812\" data-v-6bf95c48=\"\">He stressed that the key objective is to prevent the current energy-driven price shock from becoming permanently embedded in inflation expectations, which could make inflation more persistent.<\/p>\n<p data-start=\"814\" data-end=\"1171\" data-is-last-node=\"\" data-is-only-node=\"\" data-v-6bf95c48=\"\">According to the ECB\u2019s latest projections, the conflict is expected to result in higher inflation and weaker economic growth in the Eurozone this year. Future policy decisions will remain meeting-by-meeting and data-dependent, with the ECB considering multiple scenarios based on energy prices and the severity of inflation spillovers.<\/p>\n<p data-start=\"814\" data-end=\"1171\" data-is-last-node=\"\" data-is-only-node=\"\" data-v-6bf95c48=\"\">Following Trump&#8217;s abortion of the planned attacks on Iran and the announcement of a deal, the market pared back ECB rate hike bets and it now sees 36 bps of tightening by year-end compared to 52 bps before the news. <\/p>\n","protected":false},"excerpt":{"rendered":"ECB&#8217;s Kocher said yesterday&#8217;s rate hike is intended to help stabilize inflation as the Middle East conflict continues&hellip;\n","protected":false},"author":2,"featured_media":533068,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-731755","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/731755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=731755"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/731755\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/533068"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=731755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=731755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=731755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}