ECB policymakers see a June hike as very likely, Reuters reports citing sources; some advocated a move in April, could were ok with waiting until June.

The ECB's shift towards a likely hike in June, with discussions around April, reflects a hawkish pivot that markets may have underpriced.

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ECB policymakers see a June hike as very likely, Reuters reports citing sources; some advocated a move in April, could were ok with waiting until June.

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  • 'Several' governors think that at least two hikes will be needed, unless the conflict ends and there is a marked drop in crude.
  • The amount of tightening that will be necessary was among the discussed topics.
Context

This indicates increasing concerns over inflation, with several governors advocating for at least two rate hikes unless geopolitical tensions diminish significantly. Traders should watch for impacts on the Euro and fixed income markets, as expectations evolve around the ECB's tightening path.

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