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7/5, 8:09 PM (Source: TeleTrader)
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ECB determined to tighten monetary policy - report

European Central Bank policymakers are determined to support tighter monetary policy amid soaring inflation that has prompted recession fears, Econostream reported on Tuesday citing sources familiar with the plans.

The ECB does not see "substantial improvement" in the inflation outlook, one of the sources said, noting that doing less than what inflation projections assume may be "dangerous" and that the central bank might need to take stronger action. "If it [inflation] continues, there will be more and more pressure for more decisive policy," he explained.

However, another source stated that the European Union's economy might positively surprise markets, emphasizing its adaptive capacity shown during its strong recovery from the coronavirus pandemic. Commenting on the war in Ukraine and the energy market, the source argued that even if Moscow were to cut its flow of energy to Europe, the issue would be "relatively short-lived."

Baha Breaking News (BBN) / MM