BlockBeats News, July 22nd, Nuveen Global Investment Strategist Laura Cooper stated in a report that after the interest rate hike in June, the European Central Bank may keep rates unchanged at this week's meeting, but will maintain a slightly hawkish tone.

Cooper said that if geopolitical tensions reignite and push energy prices higher, the ECB will remain open to further policy tightening. She noted that inflation is more subdued than feared, with the Purchasing Managers' Index (PMI) pricing sub-index showing little sign of re-acceleration, and producer price data confirming that upstream cost pressures are easing.

“These factors have provided a rationale for standing pat this month,” she said, adding that the complexity lies in the potential disruption of commodity supplies, which could reignite energy price pressures, just as the ECB is gaining confidence in the inflation moderation path.