Reply To: ECB Raises Key Rates 75 bps as Expected with Inflation Revised Higher and Growth Lower


Largarde Presser:

Determined action had to be taken
Today wasn’t an isolated decision
Risks to inflation tilted to the upside, risks to growth to the downside
Next hike not necessarily 75 bps, not the norm
We will determine on a meeting-by-meeting basis the level that will get inflation back to 2%
Initial signs of inflation expectations above target warrant monitoring
Wage growth still contained
Where we are at is not the neutral rate
Decision was unanimous, there were different views around the table
Downside scenario for growth includes negative growth in 2023, sees negative growth in 2023
We are ‘so far away’ from a policy setting that will be enough to bring down inflation
We don’t know what the terminal rate is