ECBs Muller
The ECB Muller is on the wires saying:
- ECB should discuss 75 basis point hike in September
- inflation 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.