ECB Governing Council member Ignazio Visco told Bloomberg TV on Saturday, “I don’t think that we can indicate now what the terminal rate will be, not even if it’ll be 3.5%, 3.25% or 3.75%, because really it is data-dependent.
“Our objective is to go back to an inflation rate of 2% in the medium term. If we need to be more restrictive, we’ll be more restrictive,” he said.
Visco said “determined” steps are needed in Q2. “We have to be sure that core inflation isn’t remaining at this high level… This may induce wage increases beyond what is compatible with a medium-term 2% inflation rate, which is our target. So that is why we are observing this with a lot of care — but I’m not worried.”
