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ECB Sources Reminiscent of July Report

ECB VIEW
  • Revisiting the earlier ECB Reuters sources report, worth recalling Reuters ran a semi-similar piece ahead of the July rate decision at which they hiked 50bps (here: https://www.reuters.com/markets/europe/ecb-policymakers-discuss-50-bps-rate-hike-this-week-sources-say-2022-07-19/ ) which said: "European Central Bank policymakers are considering raising interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday to tame record-high inflation, two sources with direct knowledge of the discussion told Reuters."
  • Today's piece "Some European Central Bank policymakers want to discuss a 75 basis point interest rate hike at the September policy meeting [...] five sources with direct knowledge of the process told Reuters." is eerily similar.
  • 75bps rate hike remains in the balance, with markets currently pricing in +63bps of tightening at the Sept 8th meeting.

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