ECB Governing Council member Muller: Favorable inflation data puts the central bank in an advantageous position

Golden Ten Data reported on July 4 that European Central Bank Governing Council member Muran stated on Saturday that following last month's rate hike, data show inflation has fallen back along with the plunge in oil prices, putting the European Central Bank in a "favorable position" at present. The European Central Bank does not provide forward guidance, so it will not reveal what will happen in July. However, the fact is that the rapid decline in oil prices has brought some relief, allowing a more favorable stance on interest rates. Muran also said that compared with other central banks, the European Central Bank’s 2.25% interest rate is "very low" and the June rate hike was "reasonable under any circumstances." He also pointed out that the European Central Bank's communication at that time indicated this rate hike was not the start of a new tightening cycle.