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MNI BRIEF: More Hikes Coming From ECB, Lagarde Warns​

(MNI) LONDON
(MNI) Frankfurt

Further rate hikes in 'several' future meetings will be needed to get the benchmark policy rate to a neutral level, after Thursday's 75-bps hike across the interest rate suite, European Central Bank President Christine Lagarde said on Thursday.

However, Lagarde said today's hike -- at the larger-end of market expectations -- would not be the norm and certainly involved an element of front-loading. The larger rise across all three main rates was proposed by chief economist Philip Lane and found unanimous agreement on the Governing Council after several different viewpoints were initially expressed.

Lagarde would not be drawn on the likely size of future meeting-by-meeting hikes, adding that she did not know exactly where the terminal rate would be.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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