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De Guindos: Normalize Sooner Rather Than Later

ECB
  • *GUINDOS: ECB NEEDS TO NORMALIZE SOONER RATHER THAN LATER – bbg
  • More in line with Villeroy’s comments from earlier that the ECB must normalise as core inflation strengthens.
  • Follows from De Guindos’ last comments from May 1 that a rate hike is possible in July but not likely and that hikes will be data dependent.
  • ECB-dated OIS for July little changed on the day at 20bp of hikes priced, although year-end pricing has firmed through the afternoon to 86bps of hikes.

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