ECB’s Makhlouf: 50 bps rate hike is the minimum needed at December meeting
“I see a 50 basis point increase in interest rates as the minimum needed at our December meeting,” European Central Bank (ECB) Governing Council member Gabriel Makhlouf said on Monday.
Additional quotes
We have to be open to policy rates moving into restrictive territory for a period in 2023.
It is premature to be talking about the end-point for policy rates amid the prevailing levels of uncertainty.
There are complex issues involved in quantative tightening.
It would be wrong to ascribe our current inflation problem solely to supply shocks.
As price pressures broaden across the basket, the risks of persistently high inflation becoming embedded rises, and the case for tighter monetary policy becomes stronger.
Increasing share of forecasters expecting high rates of inflation is a development that needs closely monitoring.
Broad based fiscal policy response to high inflation may necessitate a stronger response from monetary policymakers.
Quantitative tightening must be cautious and careful.
One area that we need to spend a bit more time thinking about is how fiscal and monetary policy work together.
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Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
