ECB Governing Council member Gediminas Simkus said he choice for the next rate hike is 75, adding that “a couple of options may be on the table but 50 is the minimum.” He indicated that ECB should target “as soon as possible” on reducing its balance sheet.
At the same event another Governing Council member Madis Muller said “inflation calls for significant rate hikes,” but it’s “too early to say how much in basis points.”
Also Governing Count member Mario Council said, “Right now frontloading other debates may in my opinion have a destabilizing effect that we really need to avoid. We have a path towards normalization of monetary policy and that’s the focus right now.”
Eurozone economic sentiment dropped to 93.7, EU down to 106.4
Eurozone Economic Sentiment Indicator dropped from 97.3 to 93.7 in September. Employment Expectation Indicator dropped from 107.9 to 106.7. Economic Uncertainty Indicator rose from 25.4 to 29.3.
Eurozone Industrial confidence dropped from 1.0 to -0.4. Services confidence dropped from 8.1 to 4.9. Consumer confidence dropped from -25.0 to -28.8. Retail trade confidence dropped from -6.5 to -8.4. Construction confidence dropped from 3.4 to 1.6.
EU ESI dropped from 96.1 to 92.6. Amongst the largest EU economies, the ESI fell markedly in Germany (-4.8), the Netherlands (-3.7), Italy (-3.7), France (-3.2), Poland (-2.4) and, to a lesser extent, Spain (-1.0).
Full release here.