- ECB’s Muller: Central bank could outline rate hike plan for coming months in June
Market news
11 May 2022
ECB’s Muller: Central bank could outline rate hike plan for coming months in June
European Central Bank (ECB) policymaker Madis Muller said Wednesday that the central bank “could outline future rate expectations already at June policy meeting.”
Additional comments
APP should end early July or a few weeks earlier; rate hike must not be far behind.
Current ECB policy inappropriately easy given high inflation.
Appropriate to raise rates into positive territory by year end; moves by 25 bps increments appropriate.
Rise in spreads consistent with changed ECB policy outlook.
Details of spread fighting tool may not need to be announced in advance; tool should be tailored to specific situation.
Market reaction
EUR/USD is unfazed by the above comments, currently trading 0.18% higher on the day at 1.0542.
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