The ECB broke a streak of ten straight rate hikes last month, fuelling market expectations that its next move will be a cut, possibly as soon as April, with a total of 90 basis points of reductions priced in by the close of next year.
Kammer warns the ECB against cutting rates too soon because that would require even more costly policy tightening later on. / Photo: Reuters Archive
"Monetary policy is appropriately tight and needs to remain so in 2024," Kammer told a news conference."For all intents and purposes, should be held at that level or close to that level throughout 2024." Inflation soared to over 10 percent a year ago but has been on a steady downward path since, even if the"last mile" of disinflation is seen as the toughest and could still take two years to get from around 3 percent to 2 percent.
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