ECB Centeno: 75 basis point interest rate hikes cannot be the norm

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 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 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