ECB’s Makhlouf Warns It’s Too Early to Plan Pause in Rate Hikes
- Rates will have to stay at restrictive levels to cut inflation
- ECB is widely expected to hike again at next meeting in May
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It’s too early for the European Central Bank to start planning for a pause in its rapid rate-tightening cycle given the significant challenges to price stability Europe’s economy is facing, according to Central Bank of Ireland Governor Gabriel Makhlouf.
The ECB is widely expected to raise borrowing costs again on May 4, though in contrast to previous meetings officials are wary of making firm predictions on the size of the move as they await key data on inflation and bank lending due just two days before the decision.