ECBs Centeno in an interview with Reuters says:
- 75 basis point interest rate hikes cannot be the norm
- sees a lower increase in December
- inflation likely to peak this quarter, is a key indicator to watch at December meeting
- any rate hike in Europe has more significance than in the US, has a greater restrictive impact on financing conditions
- December meeting to transmit more predictability about monetary policy to public markets
- we are getting close to neutral rate, expects a December meeting to work out what rate ceiling could be
- predictability would be immensely helped if inflation peaked very soon
- we are nearing rate levels compatible with price stability in medium-term
- underscores important message sent by ECB when it dropped the word 'several"talking about future rate hikes
- high inflation not entrenched in the euro zone. Doesn't see second round effects from rate increases
The comments have him looking for a 50 basis point hike in December. What is also key is that he sees some concrete terminal rate guidance coming at a December meeting.
Central bank meetings in December:
- RBA December 6
- Bank of Canada December 7
- FOMC December 14
- ECB December 15
- BOE December 15
- SNB December 15
- BOJ December 19
The ECB rate decision will be made on December 15. That is one day after the FOMC meets