ECB Governing Council member Gediminas Simkus said that by July meeting, “should see some change in the data, some change in relation to what we have seen at the beginning of June”. He added, “if we see this change in data that points to the persistence of inflation, to its acceleration, 50 basis points should be a policy option for July.”
“With these levels of inflation and inflation being more and more broad-based, with wages growing in the euro area, we should move decisively toward monetary-policy normalization,” said Simkus,
ECB has pre-committed to a 25bps rate hike in July. Another hike is also pre-committed for September, but the size would be dependent on incoming data.