ECB Prepares for Next Move Amid Prolonged Inflation Pressure

European Central Bank (ECB) officials are preparing for their next decision, but they're not making any promises. Christine Lagarde said that the current inflation shock in the euro area will last longer than anticipated due to ongoing conflict in the Middle East.

Lagarde pointed out that this prolonged period of price pressure is driven primarily by the conflict in the region. Meanwhile, US President Donald Trump is predicting a decrease in oil prices once the Iran war ends, possibly after the midterm elections in November.

The ECB's next move will depend on the situation at the time of their October meeting, according to Simkus. He mentioned that they must also consider energy prices before making any decisions.