Most ECB officials expressed concern about the direction of core inflation, which is key to determining how much they push rates higher. European Central Bank President Christine Lagarde said that the European Central Bank is determined to raise interest rates further to deal with persistently high inflation; the current inflation rate is still too high and may continue for a long time. In addition, the vice president of the European Central Bank Guindos pointed out that the current round of interest rate hike cycle is coming to an end.
Simkus said the ECB is expected to raise interest rates by 25 basis points in June and July this year, but it is too early to discuss whether it will continue to raise rates in September. Muller said that core inflation has not yet shown signs of slowing down, and the European Central Bank may raise interest rates by more than one 25 basis points. Expectations that the European Central Bank will cut interest rates in early 2024 may be too optimistic.
