Free Trial

MNI BRIEF: Data Not Justifying ECB Hike Beyond Expectations

(MNI) Rome

The available data on inflation does not justify "an extension of the hiking cycle" beyond current market peak expectations around 3.25%, Bank of Portugal's Governor Mario Centeno said on Friday while presenting the bank's economic bulletin.

Tighter financial conditions "will not end when the hiking cycle is finished," as ECB interest rates will continue to be above the neutral level for some time with an ongoing effect, he said, adding that could be at peak for two or two-and-a-half years.

The time during which interest rates will remain there will depend on the path inflation takes lower, Centeno said. For him, once inflation starts to fall decisively, the ECB is obliged to again be predictable.

MNI Rome Bureau | +34-672-478-840 | santi.pinol.ext@marketnews.com
True
MNI Rome Bureau | +34-672-478-840 | santi.pinol.ext@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.