ECB Insiders Weigh Risks of Rate Hike
ECB insiders told the media that the risk of not doing enough still supersedes raising rates higher than necessary for a soft landing. An insider mentioned that this balance could shift eventually.
April Inflation Data Influences Decision
The decision on the size of the rate hike, scheduled for May 4, will depend on April's inflation data. Sources suggested the data would be significantly negative for the ECB to lean towards a 50 basis point increase.
Potential Pause in Policy Tightening Post-May
Following the anticipated rate hike in May, the report suggests that markets can expect a temporary halt in policy tightening measures.