ECB Governing Council member Pierre Wunsch and Governor of the National Bank of Belgium.
The European Central Bank have published his remarks as they were embargoed until Friday.
- "If the core inflation would remain at the level we see today in Europe of above 5%, and if we don't get clear signals that core inflation is going down, we will have to do more"
- "For me, looking at rates of 4% would not be excluded,"
- "But I want to insist I won't make any judgment on where the rates would have to go without seeing the developments of core inflation."
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The ECB raised its deposit rate by 50 basis points in February to 2.50%
The Bank has flagged another +50bp rate hike at the March 16 meeting. President Lagarde spoke Thursday:
- ECB's Lagarde: We still have to pursue higher rates, don't know the peak yet
- ECB's Lagarde: Price decline is not stable
Markets are pricing in another 50 basis-point hike by the ECB on May 4 and a peak around 4% by the end of 2023.
