ECB seen in no rush for July rate hike as oil prices ease

The European Central Bank is increasingly seen as unlikely to raise interest rates at its July 23 meeting after eurozone inflation slowed to 2.8% in June from 3.2% in May, helped by lower energy prices. The reading, reported by Eurostat for the 21-nation currency area, was the first decline since January and came in below a 3.0% economist forecast cited by The Wall Street Journal. Reuters had previously reported, citing four sources with direct knowledge of the discussions, that easing oil prices were reducing near-term inflation pressure and making a September move more likely than a July increase. Governing Council member Dolenc also said rates may stay unchanged. Markets had been assigning roughly a one-in-three chance of a July hike and did not fully price in a move until October.