ECB’s Dolenc Says Falling Energy Prices Challenge Case for Hikes

Declining energy prices have moved the euro-zone economy back toward the European Central Bank’s base case and may mean interest-rate increases aren’t needed, according to Governing Council member Primoz Dolenc.

While the situation around the Iran war remains volatile and policymakers must keep an open mind, lower oil and gas prices stemming from the recent truce are closer to the ECB’s baseline than its adverse scenario, Dolenc said.