The European monetary regulator (ECB) assured that the rate will remain at maximum levels for some time and discouraged expectations about possible drops this year.
Gabriel Makhlouf, member of the Governing Council of the European Central Bank (ECB), said on Wednesday that, once the zone interest rates euro peak, they will stay in that range for a while, and it questioned some market forecasts for possible cuts towards the end of the year.
Last year, the ECB raised rates by 375 basis points hoping to control inflation, and Makhlouf said two more hikes are likely, in June and July.
As indicated, it will be a “matter of judgement” whether there will be more rate hikes after the summer and did not want to get into speculation.
There will be no changes for a while
“I think that once we have reached what I have described as the top of the ladder of increase in interest ratesthey are likely to stay there for a while,” Makhlouf said.
And, on the other hand, he insisted on not giving time specifications. “I know that some people in the markets are looking at rate cuts at the end of the year and I would be interested to know how they are arriving at those judgments“, said.
Source: Ambito
