- The main problem in the near-term is inflation
- We will bring inflation down to 2%
- ECB must proceed with monetary policy normalisation because of broadening inflation
I think after Lagarde's comments here earlier today, there is no question about a July rate hike already. The only issue now is how aggressive will the ECB be and if the hawks can get enough support for a quicker tightening cycle. Otherwise, the window may be closing as recession risks loom just around the corner.
