ECB’s Escriva: We Are Still Not in Restrictive Territory

Escriva's framing matters because it pushes back on the market's assumption that euro-area policy is already tight enough to force a pivot. Calling out global long-term rates as a rising worry hints at a spillover channel the ECB cannot control, one that could do some of the tightening for it. The energy caveat keeps the inflation debate live rather than settled. Whether long-end pressure and second-round energy effects actually materialise is the open question.