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Vasle Talks in Support of Rate Hike Larger Than 50bps

ECB
  • ECB's Vasle states that he supports a rate hike "that could exceed 50bps" and adds that inflation has not peaked, and is more persistent and broad-based.
  • Vasle, the ECB's Slovenian rep, is on the hawkish end of the ECB's governing council and has long-stated that rates would need to rise through Q4 and into the beginning of next year, but this is the first time Vasle's commented on a rate hike of more than 50bps.
  • It's assumed that ECB's Schnabel is also in the 75bps camp, after she stated banks "need to act forcefully" in the face of inflation at the JH conference over the weekend

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