While some statements regarding July came from the officials of the European Central Bank (ECB), verbal guidance within the bank in July is considered to be a difficult task.
European Central Bank (ECB) officials are worried about getting the right tone when announcing their targets for the upcoming period after the interest rate hike scheduled for next week.
The members of the Governing Council see communication as their biggest challenge for the path to follow after the July 27 move.
The task will be to avoid giving strong signals of a new rate hike or a pause, as officials from different sectors have different perspectives on the outcome of the next meeting in September.
This concern underlines the sensitivity of the ECB, which has completed the strongest monetary tightening process that the 20-nation Eurozone has ever seen.
While investors were waiting for two more quarter-point rate hikes that would raise the deposit rate to 4 percent to reduce inflation, the latest statements by the authorities caused a step back.
Finally, on Tuesday, Klaas Knot, who has been traditionally hawkish, told that there would never be a definitive option for steps after July.