Lates News

Tomas Dvorak of the Oxford Economics Research Institute stated in a report that the European Central Bank is unlikely to raise interest rates in July after the release of weak inflation data. The inflation rate in the Eurozone in June slowed more than expected, dropping from 3.2% in May to 2.8%. The inflation rate in the services sector also fell to 3.2%. "We believe that the broad decline in inflation is sufficient to alleviate concerns about potential second-round effects, and confirms our view that the European Central Bank will maintain interest rates in July," Dvorak said. The food price inflation rate also dropped to 1.6% and is expected to remain weak in the near future. "The improvement in the inflation outlook means that we do not expect any further rate hikes," Dvorak said.