ECB's Muller says market's rate bets are not completely unreasonable, its hard to argue there is an obvious case for an April hike; can not fully exclude it
- Dangerous to assume energy shocks are temporary.
- ECB is better placed than it was in 2022 - does not have to wait to see second-round effects.
Context
Muller's remarks suggest that while the market's expectations for rate hikes may not be entirely off-base, he expresses caution about the likelihood of an April increase. This implies that the ECB is more proactive in assessing inflation risks compared to last year, indicating a nuanced approach to interest rate policy that could impact Eurozone fixed income markets and the euro.
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