More and more are switching to the inflation pessimist camp. Another big rate hike of 75 basis points at today's European Central bank (ECB) council meeting will not be enough to lower inflation expectations, economists at Commerzbank report.

Erosion of confidence

“According to surveys, more and more people are switching to the inflation pessimist camp – as in the run-up to the great inflation of the 1970s.”

“Another big rate hike of 75 basis points at today's ECB meeting is unlikely to be enough to strengthen confidence and to bring down inflation.”

See – ECB Preview: Forecasts from 15 major banks, no obstacles to a 75 bps hike