The report, citing Eurosystem sources, says that a majority of ECB policymakers are said to be prepared to back at least two 25 bps rate hikes this year, with some leaving the option open for three such hikes in an effort to get back to neutral.
Adding that while there are officials downplaying ECB policymaker Klaas Knot's idea of a 50 bps rate hike, such a possibility is also gaining traction among members of the governing council. More on that here (may be gated).
Well, we're still some way off the July meeting and a 25 bps rate hike then is pretty much a given. We may get another one after that but there will start to be challenges for the ECB to tighten further later in the year, as recession risks start to come about considering that household consumption will suffer greatly from rising energy prices and cost pressures.
