European Central Bank official downplays expectations of a rate hike in September, emphasizes the need to wait for more data

European Central Bank policymakers avoided signaling a possible rate hike in September, instead choosing to wait for more data to guide their decision-making. The central bank governors of the two largest economies in the eurozone did not indicate the direction of the next move following Thursday's rate decision; some officials considered an immediate rate hike during the meeting, but ultimately unanimously decided to keep rates unchanged. "We still face a high degree of uncertainty," said Bundesbank President Joachim Nagel in a statement, while Banque de France Governor Emmanuel Moulin emphasized that the European Central Bank already tightened policy in June. According to informed sources, unless the eurozone inflation outlook significantly improves, European Central Bank officials are prepared for a rate hike in September. After Thursday’s escalation of the Middle East conflict, oil prices topped $100 per barrel for the first time in two months.