The European Central Bank is unlikely to raise interest rates in July following a soft inflation print, Tomas Dvorak at Oxford Economics says in a note. Eurozone inflation slowed more than expected in June to 2.8% from 3.2% in May. Services inflation also eased to 3.2%. "We think the decline is sufficiently broad to assuage worries about potential second round effects and cements our view that the ECB will hold rates in July," Dvorak says. Food price inflation also declined to 1.6%, and is expected to remain soft in the near term. "The improving inflation outlook means we don't expect any further rate hikes," Dvorak says. (don.forbes@wsj.com)
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Eurozone Inflation Cements ECB Hold in July — Market Talk
The European Central Bank is unlikely to raise interest rates in July following a soft inflation print, Tomas Dvorak at Oxford Economics says in a note. Eurozone inflation slowed more than expected in June to 2.8% from 3.2% in May. Services inflation also eased to 3.2%. "We think the decline is suf…