(Reuters) – The following are comments from key European Central Bank policymakers in the run up to the June 15 policy meeting.
The ECB has already said that “more ground” needs to be covered, universally understood to mean that another rate hike is coming, but views on the outlook further out diverge.
CHRISTINE LAGARDE, ECB PRESIDENT, JUNE 5
“The latest available data suggest that indicators of underlying inflationary pressures remain high and, although some are showing signs of moderation, there is no clear evidence that underlying inflation has peaked.”
JOACHIM NAGEL, BUNDESBANK PRESIDENT, JUNE 5
“From today’s perspective, several more rate hikes are still necessary. For me, it is not certain that we will reach the interest rate peak in the summer.”
“Underlying pricing pressures are also far too high and so far show little sign of abating.”
KLAAS KNOT, DUTCH CENTRAL BANK GOVERNOR, JUNE 7
“I expect two rate hikes in June and July. After that, the picture is unclear. In an optimistic scenario we will have done enough by then. But there are many upward risks that could possibly force us to raise rates further. I would not hesitate to do so if needed.”
FRANCOIS VILLEROY DE GALHAU, FRENCH CENTRAL BANK GOVERNOR, MAY 22
“I expect today that we will be at the terminal rate not later than by (the end of the) summer.
“In the meantime, we have three possible Governing Councils either for hiking or pausing, but don’t deduce a guidance from this or a preference for a given terminal rate.
PHILIP LANE, ECB CHIEF ECONOMIC, MAY 26
“We’ve chosen at the Governing Council not to convey a week by week or meeting by meeting (estimate on the) terminal rate because it conveys a sense of certainty which doesn’t exist.
“When energy prices fall, core inflation does follow, because there is less pressure from an energy cost, there’s less pressure on the cost of living, therefore on nominal wage increases.
“We do think this spectacular reversal of energy prices will feed into lower core, but the timeline for that and the scale of it is uncertain.”
GABRIEL MAKHLOUF, IRISH CENTRAL BANK GOVERNOR, MAY 26
“My gut feeling at the moment from everything I have seen is that we’ll be moving rates again at our June meeting and it wouldn’t surprise me if we’re moving again at our July meeting. After that, let’s see. In terms of the data we’re getting, another two steps seem to be my lead options.”
ISABEL SCHNABEL, ECB BOARD MEMBER, MAY 9
“Based on today’s data, there is no doubt that we have to do more to bring inflation back to our 2% target in a timely manner.
“We will raise rates decisively until it becomes clear that core inflation is also declining on a sustained basis.”
PABLO HERNANDEZ DE COS, SPANISH CENTRAL BANK CHIEF, MAY 22
“The process of tightening our monetary policy is well underway, although, based on the information currently available to us, we have some way to go.
“Interest rates will have to remain in restrictive territory for an extended period of time to achieve our objective in a sustained manner over time.”
LUIS DE GUINDOS, ECB VICE PRESIDENT, MAY 18
“A significant part of the journey has been made, there is still some way to go, probably the road ahead is shorter, but I don’t know what the end point is going to be.
(Reporting by Balazs Koranyi; Editing by Toby Chopra)
