ECB Officials Start to Accept Rate Hikes May Not End in July
- Inflation worry means September increase is becoming an option
- There’s no sense of confidence about an imminent pause
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European Central Bank officials are starting to accept that interest-rate increases might need to continue in September to bring inflation fully under control, according to people familiar with the debate.
The ECB’s data-dependent approach means any views on what could happen in four months may easily shift. All the same, some policymakers from across the spectrum of the Governing Council are speculating that two further expected quarter-point hikes may not be sufficient to tame consumer prices, said the people, who declined to be identified because such discussions are private.