“With the key interest rate, a four in front of the decimal point is also possible”

WirtschaftsWoche: Mr. Veit, the participants in the financial markets are firmly counting on the ECB raising interest rates again at its meeting on Thursday. Do you share the prognosis?
Konstantin Knows: I expect the ECB to hike interest rates by 25 basis points. However, a rate hike that is twice as large by 50 basis points cannot be ruled out. As for the path ahead, much will depend on underlying inflationary pressures, as reflected in the core rate of inflation, ie inflation excluding energy and food prices. So far, no significant weakening has been identified. There is a risk that the core rate will prove more resilient than the ECB would like. The ECB could therefore certainly raise interest rates to 3.75 percent for the deposit rate. I also think a four before the decimal point is possible.