The ECB's Response to the Montre Poiseu Outlook

The lessons of the 1970s, the stop go mistake that was made by some central banks is often referred to in central banking circles here. And it really does sound like the ECB intends to apply those lessons in this cycle as well. On the terminal rate specifically, we haven't changed our view. We're still 375 for the terminal rate. So quarter point hikes at the next two meetings June and July. But I think there is a clear hawkish skew hawkish bias. A 25 basis point hike again in September to up to a 4% level. I wouldn't even rule out a further hike in October to four and a quarter percent if the inflation numbers remain sticky in Europe.