ECB Governing Council member Emmanuel Moulin told the Rencontres Economiques conference in Aix‑en‑Provence that the central bank is in a “good position” after last month’s 25‑basis‑point rate hike and the latest inflation data. He said the rapid fall in oil prices has eased price pressures, giving the ECB breathing room on monetary policy. The move follows concerns that soaring energy costs could spill over into broader consumer prices.

Moulin emphasized that the current policy rate of 2.25% remains “very low” compared with peers, and that the June increase was justified regardless of the scenario. While some policymakers fear lingering energy‑price effects on food and wages, others argue the softer inflation backdrop warrants a pause. Investors have trimmed bets on further tightening, and Bloomberg Economics now sees inflation peak behind us.

Moulin warned the ECB is not issuing forward guidance for July, leaving the next meeting open to debate. The split among governors could shape the eurozone’s rate path, influencing bond yields and euro‑dollar exchange rates. With the central bank’s stance perceived as accommodative, markets may price in a near‑term hold, limiting further rate‑rise expectations.