ECB could raise rates by 50 basis points in February and March, says Olli Rehn

HELSINKI (Reuters) – The European Central Bank (ECB) could likely decide to raise rates by half a point at the next two meetings in a bid to reduce inflationary pressures, Council member Olli Rehn said on Friday. governors.

“We are going to stay the course, as indicated (on Thursday) by the President (of the ECB) (Christine) Lagarde and that will probably translate into rate hikes of 50 basis points in the next meetings, at least in my opinion. in February and March,” Finland’s central bank governor told a news conference.

“We will do whatever it takes to contain inflation and stabilize it at the target (of 2%, editor’s note)”, he added. “There’s still a long way to go.”

The rise in the consumer price index in the euro zone stood at 10.1% over one year in November, according to final figures published by Eurostat.

According to François Villeroy de Galhau, also a member of the Governing Council of the ECB, inflation should peak in the euro zone in the first half of 2023 but the “game is not over”.

(Essi Lehto report, written by Balazs Koranyi, French version Laetitia Volga, edited by Kate Entringer)