ECB governors see more tightening ahead with October in play
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ECB Governors Indicate More Tightening Possible as Inflation Concerns Mount
ECB Policy Outlook and Inflation Drivers
Expectations for Further Policy Tightening
FRANKFURT, Sept 10 (Reuters) – European Central Bank policymakers expect further policy tightening in the months ahead to fight a war-fuelled rise in inflation and could move again as soon as October, two sources told Reuters.
Recent Interest Rate Hikes
The ECB raised borrowing costs on Thursday for the second time this year and warned that price pressures could prove lasting, fuelling bets on even more interest rate hikes.
Concerns Over Rising Energy Prices
Policymakers are growing more worried about inflation after a sharp rise in gas and oil prices in recent months, which they think may require more higher rates to stop it from spreading to the rest of the economy, the sources said.
Potential Timeline for Next Move
They said a move might come at the ECB’s next meeting on Oct 29 although that would entirely depend on incoming data and developments in Iran.
Official Responses and Statements
An ECB spokesperson declined to comment.
Lagarde’s Comments on Future Decisions
ECB President Christine Lagarde said during a news conference on Thursday she could not anticipate what the next move may be and reaffirmed the bank’s mantra for “meeting-by-meeting”, “data-dependent” decisions.
(Reporting by Francesco Canepa and Balazs Koranyi)
