ECB Governing Council member Gediminas Šimkus said, “I see positive trends for inflation”. Headline inflation might have peaked but core hasn’t. He added that March’s rate hike might not be the last. For May, it could be 25bps or 50bps.
“I think that we are already moving towards that terminal rate,” Šimkus noted. Also, a rate cut in 2023 is unlikely, but possible in 2024 if disinflation trend becomes prominent.
Separately, another Governing Council member Peter Kazimir said in a statement today, “The March increase will not be the last… we will decide how many more will be needed later,” adding that “the battle against inflation is far from won”.