[Economist: ECB Pauses Rate Hikes but Signals Significant Shift] Jin10 Data, April 30 – Edgar Walk, Chief Economist at Metzler Asset Management, stated in a report that the European Central Bank (ECB) paused rate hikes as expected during its policy meeting, but its tone has shifted significantly. He noted that the ECB perceives heightened risks of rising inflation and declining economic growth. 'This is a classic stagflation dilemma,' Walk said. The key, he emphasized, is that the ECB does not want to counteract oil prices but seeks to prevent energy price shocks from spreading to wages, prices, and inflation expectations. 'Exogenous price shocks will thus become a monetary policy issue,' he pointed out. While an immediate rate hike seems unnecessary, he added that rate hike measures 'remain reasonable.' Walk's baseline scenario predicts that the ECB will implement two rate hikes, each by 25 basis points, by the end of 2026.