ECB Governing Council member Gabriel Makhlouf said, “We need to continue to increase rates at our meeting next week – by taking a similar step to our December decisions – and also at our March meeting, although our future policy decisions need to continue to be data-dependent given the prevailing uncertainty.”

“Raising the policy rate also signals our commitment to price stability,” Makhlouf added. “It sends a clear message that we will not allow inflation to stay above 2 per cent and helps to contain inflation expectations, guarding against the emergence of self-reinforcing inflation dynamics and tackling the risk of a persistent increase in inflation expectations.”

Separately, Bundesbank President Joachim Nagel said, “For February and March, we have announced that we will raise interest rates sharply again. Then we will look at where the inflation rate is in the spring and what our experts’ forecast looks like. I wouldn’t be surprised if we have to keep raising rates even after the two announced steps.”

ECB Governing Council member Gediminas Simkus said yesterday, “core inflation remains strong and demonstrates that the fight against inflation is not over.”

“There’s a strong case for staying on the course that’s been set for the coming meetings of 50 basis-point increases. In my opinion, these 50 basis-point increases must be taken unequivocally,” he added.

“Pressures in wage growth are increasing — I expect wage increases to exceed historical averages in the euro area,” he said. “It’s something that’s happening and something we need to take into account because it affects core inflation.”

“It’s clear to me that the current economic environment requires us to deliver increases of 50 basis points in the coming meetings,” he said. “When we move to the more distant periods of the summer or next autumn, we need to wait and see.”

ECB Executive Board member Fabio Panetta said in an interview, “It was reasonable to increase rates in December and signal a similar step in February.”

“But beyond February any unconditional guidance – that is, guidance unrelated to the economic outlook – would depart from our data-driven approach.”

“Our December decisions were based on the projections available at that time. In March we will have new ones and should reassess the situation.”

“Inflation is still too high, but recent developments suggest that we can fend off the risks of second-round effects and bring down inflation by continuing to adjust our policy rates in a well-calibrated, non-mechanical way.”

Full interview here.

ECB President Christine Lagarde said in a speech that the “high inflation environment” is a big challenge facing Europe. And, that’s “the challenge that concerns me the most”.

“We must bring inflation down. And we will deliver on this goal,” she emphasized. “We have made it clear that ECB interest rates will still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive, and stay at those levels for as long as necessary.”

“In other words, we will stay the course to ensure the timely return of inflation to our target.”

Another challenge Lagarde named is to “best protect Europe’s critical interests… as the next chapter in the globalisation story is being written”. Europe must be “prepared for a future in which the global economy could fragment”, and “develop more our own sources of growth.”

Full speech here.

ECB Governing Council member Yannis Stournaras said “in my opinion, the adjustment of interest rates needs to be more gradual, taking into account the slowdown in growth of the euro area economy.”

“Given the high uncertainty, ongoing geopolitical and macroeconomic turmoil, and volatility in the markets, it is very difficult to accurately predict the level at which interest rates need to be set,” he added.