ECB’s Kazimir: Additional tightening could come if incoming data forces us to

  • We will have to stay at the peak for the next few quarters
  • Bets on rate cuts happening in 1H 2024 are entirely misplaced
  • Eagerly awaits December update of inflation forecast to get a clearer picture
  • Upside risks to inflation have yet to dissipate entirely, must stay vigilant

He adds that those saying that rate hikes are over should “hold their horses”. But it is a safe assumption I would say considering the state of the economy and the trajectory that it is facing in the months ahead. They need to portray confidence, it is part of their job. But at the end of the day, they might very well have to talk about rate cuts sooner than necessary.

This article was written by Justin Low at Source