1245 GMT - The European Central Bank's decision to leave interest rates unchanged was no surprise, and the accompanying press release gives no clear signal about its next move, Capital Economics' Jack Allen-Reynolds says in a note. Despite the increase in oil prices over recent weeks, the commentary maintains a neutral tone on the policy outlook, noting that energy prices are close to the ECB's baseline assumptions, he says. If energy prices drop back in the coming months, the bank is likely to leave interest rates unchanged this year, Allen-Reynolds notes. "But if energy prices keep rising, there's a good chance that it will hike again." If policymakers expect to hike in September, ECB President Christine Lagarde might give a hint at the press conference later, he adds. (edward.frankl@wsj.com)

(END) Dow Jones Newswires

July 23, 2026 08:45 ET (12:45 GMT)

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