In an interview with the Italian Corriere della Sera, the head of monetary policy at the European Central Bank (ECB), klaas knotI affirm that the ECB must raise the official interest rate at least twice moreas reported by Reuters.
Knot further argued that rates need to stay put for a significant period of time after these increases.
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“The general inflation ceiling has been left behind, but we are not sure that the core inflation ceiling has been reached“.
“Most of the impact of the ECB’s monetary tightening is still in the making.”
“lThe next two ECB hikes should be 25 basis points each“.
“I’m totally open to what happens with rates after the summer.”
“Market appreciation of rate cuts is overly optimistic.”
Market reaction
These comments did not help the Euro strengthen against its rivals. At press time, EUR/USD is down 0.35% daily at 1.0712.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
