ECB's Villeroy: A 50 bps rate hike isn't part of the ECB consensus

• ECB is in the process of normalising policy
• There is no tradeoff between growth and 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

Even Lagarde seemed rather pensive about a 50 bps rate hike earlier, so it isn't so much of a surprise really. The issue for the ECB in my view isn't getting rates from -0.5% to 0% but rather lifting rates significantly in positive territory - more so if they want to talk up any chance of getting to the supposed neutral rate.

In any case, Villeroy did earlier in the day come out to say that rate hikes in July and September are "likely a done deal". That alludes more to a 25 bps rate move in each meeting.