MNI BRIEF-ECB To Keep Hiking To Restrictive Levels–De Cos

The European Central Bank will keep raising its interest rates at “a steady pace” until reaching levels restrictive enough to return inflation to its 2% target in the medium term, ECB policymaker Pablo Hernandez de Cos ECB policymaker, said on Wednesday.

“Keeping interest rates at restrictive levels will reduce inflation by moderating demand”, de Cos, the Bank of Spain's governor said, adding that it also will protect from the risk from a de-anchoring of inflation expectations.

The ECB should reach its “terminal interest rate compatible with the target," understood as the level from which inflation should return to 2% in the medium term. (See MNI SOURCES: Doves Eye Smaller Hikes As Inflation Falls)