ECB Governing Council member Mario Centeno was asked yesterday about whether the central bank should hike by less that 75bps in December. He said, “I think there are conditions in place — many conditions — for the increase to be less than that number”.
Centeno also noted that “rates in Europe continue to be roughly half those in the United States”, and that’s a good indicator of the difference between the economic fundamentals of the two regions. He also urged restraint in wage growth and company margins as that “could help the ECB a lot in combating inflation”.
