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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

Luis de Guindos

Photographer: Peter Boer/Bloomberg

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.