Free Trial

MNI BRIEF: Two 25 Bps Hikes Seen In July, Sept - ECB's Lane

(mni) london

The ECB's policy is for a gradual normalisation of policy, which, at present, points to two 25 bps rate hikes by the end of the third quarter, Chief Economist Philip Lane said in an interview published Monday.

"Normalisation has a natural focus on moving in units of 25 basis points, so increases of 25 basis points in the July and September meetings are a benchmark pace," he told Spain's business paper Cinco Dias. MNI has recently reported this appeared the current consensus position of the Governing Council (MNI SOURCES1: ECB Seen Making Two To Three 25-BP Hikes In 2022).

Stressing that President Christine Lagarde's decision to lay out a clear roadmap in a recent blog was correct giving heightened uncertainties, Lane said a larger 50 bps hikes would likely be discussed, but the "current assessment of the situation, where we think the medium-term inflation outlook is in line with our two per cent target, calls for a gradual approach to normalisation."

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