ECB: Lane, rate hike for several meetings

The large 75 basis point hike in interest rates decided by the European Central Bank last week should be the exception and not the norm. ECB chief economist Philip Lane sees smaller rate hikes in the future, the magnitude of which will continue to depend on data and will follow a meeting-by-meeting approach. In relation to last week’s rise, Lane explains that this important step “anticipates the transition from the prevailing highly accommodative level of policy rates to levels that will ensure the timely return of inflation to our medium-term target of 2%. Based on our current assessment, we expect this transition to require us to continue raising interest rates in several upcoming meetings. ”