ECB’s Simkus Says Half-Point December Rate Hike Is the Minimum
- Third straight 75 basis-point increase is ‘also possible’
- Lithuanian central bank chief speaks in interview in Vienna
The European Central Bank headquarters in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank must lift interest rates by at least a half-point in December to tackle record inflation, according to Governing Council member Gediminas Simkus, who considers a larger move still an option.
While it’s clear that price growth remains too rapid and borrowing costs will have to rise further in 2023, it’s too early to settle on the size of the next move as officials will only get fresh economic forecasts at the Dec. 14-15 meeting, Simkus said in an interview. A decision on reducing the ECB’s bond portfolio will also play a role, he said.