ECB's Visco: Rate hikes could have the biggest impact after economy has already slowed<ul><li>Rates must keep rising though long-term inflation expectations remain anchored</li><li>Approach to policy tightening will be defined meeting by meeting based on data</li><li>Eurozone mid-term economic prospects important to establish more appropriate final level, proceeding gradually</li><li>Significant worsening of economic outlook is cause for concern</li><li>Impossible to fully offset the impact of the energy shock on profits and wages</li></ul><p>This is a dovish turn and draws the lines in the ECB debate. That said, with Dutch inflation at 17% today, there's not much an argument for staying on the sidelines.</p>
This article was written by Adam Button at forexlive.com.
Source: ECB's Visco: Rate hikes could have the biggest impact after economy has already slowed (https://forexlive.com/centralbank/ecbs-visco-rate-hikes-could-have-the-biggest-impact-after-economy-has-already-slowed-20220930/https://forexlive.com/centralbank/ecbs-visco-rate-hikes-could-have-the-biggest-impact-after-economy-has-already-slowed-20220930/)
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