- Meeting-by-meeting approach is the right path for the ECB
- Nothing is off the table in the September meeting
- We're moving closer to restrictive territory but not there yet
- Need at least a year-and-a-half to see core inflation closer to 2%
This just rebuffs the narrative after the ECB meeting last week but for now, markets are expecting at least one more rate hike in June and possibly one more in July. We'll see how that changes in the months ahead, keeping in view inflation and economic developments.