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Kazimir Keeps 50bps on Table for September

ECB
Reuters runs headlines from ECB's Kazimir:
  • EXPECTS 25 BPS RATE HIKE IN JULY BUT OPEN TO DISCUSSING 50 BPS MOVE, POSSIBLY IN SEPT, GIVEN RECORD INFLATION
  • NEUTRAL RATE IS CLOSER TO 2% THAN 1%, IT WILL TAKE AROUND 200 BPS OF RATE HIKES TO GET TO NEUTRAL
  • INFLATION WILL STAY OVER TARGET IN 2024, POSSIBLY RETURN TO TARGET IN 2025
Comments from Kazimir infitting with his moderately hawkish stance - he votes at the upcoming June, July and September meetings. Had previously argued in favour of exiting negative interest rate policy "within a year at the latest"

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