ECB Governing Council member Klaas Knot told CNBC today, “Our president has already announced that most of the ground that we have to cover we will cover at a constant pace of multiple 50 basis-point hikes”
“So we will continue that at a steady pace. Based on the information that we have available today, that predicates another 50-basis-point rate hike at our next meeting, and possibly at the one after that, and possibly thereafter, but everything will also be determined by the review of data. So don’t assume that it’s a one-shot 50; it’s more than that,” he added.
Referring to recent market speculations that ECB will slow down rate hikes in March, Knot said, “The sort of market developments that I’ve seen over the last two weeks or so, are not entirely welcome… I don’t think that they are compatible, actually, with a timely return of inflation towards 2%.”
“Core inflation shows no signs of abating,” Knot said. “I would first need to see different dynamics in core inflation before I could start thinking about a more equal balance of risk.”
