ECB Governing Council member Robert Holzmann said “50 may be the minimum” rate hike at next meeting in October. He added, “could it be 100? It could but I don’t see the necessity now to go as fast. I think 75 would be a good guess.”
Holzmann also noted that ECB is still “some way” from neutral interest rate. He said lifting deposit rate from current 0.75% to 2.50% would definitely take it beyond neutral.
Regarding quantitative tightening, he said it’s part of the normalization process, and will be discussed at a non-monetary-policy meeting next week in Cyprus.
