ECB may consider 50bp rate hike at Thursday's policy meeting
By Alexander Bueso
Date: Tuesday 19 Jul 2022
(Sharecast News) - The European Central Bank's governing council might consider raising official short-term interest rates by 50 basis points when they next meet on 21 July.
That proposal would be tabled by the monetary authority's chief economist, Philip Lane, Bloomberg reported, citing people familiar with the situation.
Nevertheless, it was unclear whether there would be sufficient backing for such a move, the same people reportedly "stressed".
On 28 July, ECB chief, Christine Lagarde, had clearly signalled that rates would rise by 25bp at the following meeting.
She also left the door open to a half percentage point hike at September's policy meeting.
Since Lagarde last spoke, a few ECB policymakers had spoken of the need to move more quickly, although several other central banks around the world had already made half percentage point increases since then.
Bloomberg added that money markets were pricing-in almost 50% odds of a half point move at Thursday's meetings, up from the 20% odds that were being assigned the day before.
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