UBS On-Air: Paul Donovan Daily Audio 'Carrying on, without keeping calm'

UBS On-Air: Paul Donovan Daily Audio 'Carrying on, without keeping calm'

From UBS On-Air: Market Moves by Client Strategy Office

June 12, 2026 · 2 min

About this episode

Paul Donovan discusses the ECB's concerns about oil price pressures and the implications for inflation and interest rates.

The expected error from the ECB was accompanied by rhetoric citing concerns about oil price pressures broadening throughout the Eurozone economy. There is no evidence of this reported broadening—non-oil prices should be expected to pass on oil-related costs, and only a wage-spiral or profit-led inflation would constitute a broadening of inflation pressures. These are notable by their absence. Nonetheless, the Teutonic cry of “we must have discipline” seems to be echoing throughout the ECB, raising the risk that the error will be compounded with a further rate increase.

People in this episode

Host: Paul Donovan

Topics covered

  • ECB
  • oil prices
  • inflation
  • Eurozone economy
  • interest rates

Keywords

  • ECB
  • oil price pressures
  • inflation
  • Eurozone
  • interest rates
  • wage-spiral
  • profit-led inflation

Mentioned in this episode

Organizations: ECB

Places: Eurozone

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