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"The European Central Bank's Martins Kazaks said ''there is no pivot, we still say that inflation is a problem, and we will keep raising rates.''
He was also recently quoted saying that the European Central Bank must raise interest rates much further, but that it is impossible to say how far because economic uncertainty is too high.
“Nobody at the moment can know with any precision where exactly the terminal rate will be,” Kazaks said in an interview in Riga. Borrowing costs “are still way below where they should be” and must move to levels that equate to monetary tightening, not just a withdrawal of stimulus, he said.
Meanwhile, the euro is advancing on Monday. Investors have been of the mind that the US economy is slowing enough to allow the Federal Reserve to ease its rate-hiking pace and the ongoing speculation that China may ease COVID restrictions. The euro is approaching last month's highs as the following hourly chart illustrates:
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ECB's Lagarde: Inflation is ''much too high'', rates will rise further
European Central Bank President Christine Lagarde has repeated that the cycle of interest-rate increases must ensure that inflation returns to the 2% target over the medium term.
''Must bring inflation back to 2%,'' she said in recent trade, adding again that inflation is ‘much too high’'. She said rates will rise more.
Meanwhile, EURUSD is on the up and traders have been of the mind that the US economy is slowing enough to allow the Federal Reserve to ease its rate-hiking pace.
This is weighing on the greenback and the ongoing speculation that China may ease COVID restrictions is also playing a role in the downside at the start of the week.
EURUSD has been approaching last month's highs as the following hourly chart illustrates:
ECB Preview (European Central Bank)
ECB says more to go on normalisation after 75 bps hike in October
LATEST ECB MEASURES TO BATTLE INFLATION
ECB's Lagarde: Inflation way too high, we have to take action
|The European Central Bank President Christine Lagarde said on Thursday that inflation is way too high, ''we have to take action,'' adding that the ECB will do whatever is needed and will use all instruments including balance sheet reduction. We ''must deliver on price mandate, ‘no matter what','' she said.
OCTOBER MEETING REVIEW
Breaking: ECB hikes key rates by 75 basis points in October as expected
The European Central Bank (ECB) announced on Thursday that it raised its key rates by 75 basis points (bps) following the October policy meeting as expected. With this decision, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be increased to 2%, 2.25% and 1.5% respectively.
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