Why does ECB Governing Council member Emmanuel Moulin say the ECB is in a 'good position' regarding monetary policy?

Emmanuel Moulin says the ECB is in a 'good position' because of last month’s 25 basis-point interest-rate hike and recent data showing inflation has eased, particularly due to the rapid fall in oil prices — which 'reassures us and puts us in a better position today on rates.' He emphasizes that the June hike was 'legitimate' in all scenarios and that the ECB’s communication made clear it was not the start of a new tightening cycle.

What are the key factors causing disagreement among ECB policymakers about the next rate move?

ECB policymakers are divided because, while they were unanimous in supporting June’s hike amid surging oil prices, the subsequent Iran peace deal and a surprisingly sharp slowdown in inflation have altered the outlook. Some fear lingering energy cost pressures could still transmit to food, services, and wage demands; others view the changing backdrop — especially falling oil prices and easing inflation — as grounds for holding rates steady for now.