1403 GMT - The ECB's statement alongside its decision to hold rates suggests that policymakers think that the inflationary effects of higher energy prices will outweigh the disinflationary effects of weaker economic growth, Capital Economics' Jack Allen-Reynolds says. Should energy prices keep rising, the balance of opinion could shift towards getting on the front foot by hiking in of April, and perhaps by as much as 50 basis points, he says in a note. If oil and natural-gas prices remain close to their current levels, headline inflation could rise above 3% by April and above 4% in the summer, Allen-Reynolds notes. "We doubt that the ECB would 'look through' a shock that size," he says. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
March 19, 2026 10:03 ET (14:03 GMT)
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