ECB Muller (more of a hawk): ECB should discuss 75 basis point hike in September

The ECB Muller is on the wires saying:

• ECB should discuss 75 basis point hike in September
• 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 outlook has failed to improve.
• Will go into the meeting with an open mind
• wants to hear other colleagues arguments as well as economic projections
• cautioned against being too timid as inflation is set to go higher before dropping next year
• inflation has been too high for too long and we are still far behind the neutral rate

The ECB will meet next Thursday. The expectations for a 50 or 75 basis point hike is fairly evenly split. Recall that at the launch, the ECB increased rates by a greater than expected 50 basis points.