- Discussion on what level of rates the ECB aims to reach is premature
- Priority is to continue fiercely with normalisation of policy
- Inflation has been unacceptably high
- Risks to inflation is skewed upwards, risks to economy is skewed downwards
This is just very much a reiteration of what we have heard from Lagarde yesterday. She mentioned that 75 bps rate hikes are "not the norm" but from her tone, it is possible to expect that in October as inflation continues to hold high. Adding that policy tightening will continue for "several meetings" in which she alluded to being "less than five" - inclusive of yesterday.
