ECB plans smooth rate hike in 2023
2022.11.27 04:38
ECB plans smooth rate hike in 2023
Budrigannews.com – As a member of the governing council, Gabriel Makhlouf, was quoted as saying on Sunday, “if further hikes are required, the European Central Bank will likely increase interest rates by smaller increments next year.”
Markets are betting on a 50-75 basis point increase at the next ECB meeting on Dec. 15 because the central bank started raising rates in July at the fastest rate ever recorded.This week, Makhlouf stated that the size of that hike is still up in the air.
The report of their most recent meeting, which was released on Thursday, revealed that they are unable to fully agree on their final destination or pace, despite the fact that policymakers have been insistent that rates need to increase further to assist in lowering inflation.
In an interview, Irish central bank chief Makhlouf told Ireland’s Sunday Independent newspaper, “The likelihood is that if the rates go up, they’ll go up by smaller increments”
“Then we will need to see how the economy of the euro area is doing so that we can determine how much more we need to do.And at what rate should we proceed? I anticipate that inflation will be lower by the second half of next year.
