ECB’s Vasle: 75 bps rate hikes at both October, December meetings may be appropriate

European Central Bank (ECB) policymaker Bostjan Vasle said on Friday that 75 basis points rate hikes at the October and December meetings may be appropriate, as reported by Reuters.

Additional takeaways

“Appropriate to discuss QT once rates reach the neutral level, discussion and decision should happen in 2023.”

“Rates need to enter restrictive territory; decisions should be made meeting by meeting after December.”

“Inflation may be close to peak if there are no new shocks; longer-term expectations still anchored.”

Market reaction

EUR/USD stays on the backfoot despite these hawkish remarks and was last seen losing 0.45% on the day at 0.9730.