February 03, 2023 11:16 GMT
Wunsch Sees Possibility of 25 - 50bps Rate Hike in May
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- ECB's Wunsch comments on Thursday's ECB meeting, stating that a 25 or 50bps rate hike in May is possible, adding that ECB will not go from 50bps hike in March to zero in May.
- Wunsch adds that if core inflation remains persistent, 3.5% terminal rate will be the minimum and UK and US rates at or above 4.00% mark the reference points for the ECB in determining the terminal rate.
- Lastly, Wunsch adds that ECB's decision this month was hawkish, adding that the ECB's governing council were surprised by the market reaction.