ECB Turmoil Truce Is Fraying as Hawks Ponder Next Rate Hike
- Knot reckons another increases is needed at May meeting
- Nagel, Holzmann both stated case for further tightening
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One week after the European Central Bank shirked from offering any signal about its next interest-rate move, hawkish officials are getting bolder about the need for further tightening.
With last Thursday’s half-point hike having arrived without incident, a quarter-point Federal Reserve increase also materializing, financial turmoil subsiding, and confidence building that the euro zone’s bank system has weathered market scrutiny, policymakers are once again daring to state the case for higher borrowing costs.