- We have to be attentive to spillovers from Fed policy
There are quite a number of ECB speakers out so I'm going to put them together below:
- Will not speculate when rate hikes will end (Nagel)
- But we are in a different situation to the US (Nagel)
- A good part of rate hikes should already have been done (Centeno)
- Inflation should reach its peak in Q4 2022 (Centeno)
There are some mixed remarks in there but all of which points to the likelihood of a couple more rate hikes still to follow by the ECB. And as mentioned earlier, if economic conditions deteriorate rapidly, expect that to also impact the central bank's appetite to keep pursuing tighter policy next year.
