ECB's Kazaks says every meeting is a live meeting and a lot can happen until the April meeting, the two rate hikes priced in for this year is reasonable
- Firms may start adjusting prices quicker than in the past given recent experience with inflation.
- Have not seen large second-round inflation impacts materialise.
- Energy price developments are not far from baseline but moves volatile, uncertain.
Context
Kazaks' remarks suggest that the ECB remains vigilant and flexible regarding monetary policy, emphasizing the possibility of adjustments ahead of the April meeting. His comment on price adjustments indicates that firms are adapting to inflationary pressures, which could influence future rate hikes. Overall, this stance could imply that the ECB is leaning towards a data-dependent approach, making future policy decisions more uncertain and potentially impacting EUR and fixed income markets.
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