The ECB will continue to hike rates even after the March meeting when, in all likelihood, rates will rise by 50 points to 3.5%. He claims it the central bank’s chief economist Philip Lane in a speech at Trinity College Dublin that “current information on inflationary pressures suggests it will be appropriate to raise rates beyond the March summit” but the amount will be decided on the basis of the data. The market already estimates that rates will rise to 4% within the year.
The governor of the Austrian central bank, and member of the board of governors of the ECB, increases the dose, Robert Holzmanche calls for rate hikes by half a point at each of the four meetings through July. In an interview with the Handelsblatt, the banker, who has always been one of the most ‘hawkish’ within the central bank, explained that he believes that “‘core’ inflation will not weaken significantly in the first half of the year and will remain at current levels”
It is not of the same opinion for the Italian Banking Association. “We hope that the European Central Bank shares what has recently been indicated by the Governor Visco when he recalled that it is necessary to balance the two risks that monetary policy can run, doing too little or doing too much and that today the two risks are symmetrical”. This was stated by the general manager of the ABI Giovanni Sabatini regarding the possible new rate hikes by the ECB. “A ‘cautious approach’ is needed in the current circumstances based on a careful analysis of the data and not too much on theoretical models which in the current circumstances, strongly dependent on exogenous factors, could be inconsistent or even counterproductive”.
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