Some ECB policymakers want to discuss a 75 bps hike next month - report

This could be a big hint that the ECB wants to take on inflation head on.

That said the bones of this report are brittle. One of the sources quoted said this:

"I won't necessarily back 75 but there is no reason it shouldn't be discussed"... "If the Fed did it here is no reason why we chould not at least put it on the table."

I mean, are we discussing this for real or playing games?

Another said:

"The outlook is much worse that we projected in June so I agree that 75 bps should at least be discussed."

A third source was more hawkish:

"For me, 50 is the minimum. More data will come in before Sept 8 but as of now I see a strong case for 75."

Yet another pointed to the currency:

"If you don't hike, will energy get cheaper? No. In fact it coudl get more expensive since the euro would likely weaken and energy is denominated in dollars"

That's some emerging-market policymaker-style thinking.

EUR EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term/USD is up to a session high of 1.0072 on this. There's a real philosophical question about the ECB's role in an energy crisis and with a failing economy. The mandate is inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term-only but when the cause of inflation has little to do with ECB policy, does hiking rates help? Trying to pump the currency is a weird argument because it makes Europe more-competitive on many exports as well.

I wrote about this debate yesterday and offered my new favorite meme.