ICYMI – ECB’s Nagel says to expect a rate hike at the July meeting, September data driven

Germany’s Bundesbank President and European Central Bank Governing Council member Nagel spoke on Monday.

Key points:

  • Transmission may be taking longer than in the past

  • Reiterates that a
    hard landing is unlikely

  • Too early to declare
    victory over inflation

  • Core inflation in
    euro zone is ‘very sticky’

  • Don’t currently
    see risk of overtightening

  • “We have to hike next time and I expect another 25 basis-point hike for the July meeting”
  • “For the September meeting, we will see what the data will tell us”

The ECB July meeting is next week:

This article was written by Eamonn Sheridan at www.forexlive.com. Source