Central Banks
ECB’s Guindos Says Jumbo Hike Aimed at Inflation Expectations
- Unclear how much further rates will rise, vice president says
- Some officials are open to repeat of 75 bps move in October
Luis de Guindos
Photographer: Peter Boer/BloombergThis article is for subscribers only.
The European Central Bank’s jumbo increase in interest rates last week was designed to keep inflation expectations anchored, according to Vice President Luis de Guindos.
The three-quarter-point move marked an unprecedented monetary-tightening step by the ECB, which has been accused of acting too sluggishly to counter record euro-zone price gains. In announcing the decision, policy makers also said they wanted to “dampen demand” -- despite Europe’s energy crisis tipping it toward a recession.