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ECB’s Makhlouf: It would be a question of judgement on rate hikes beyond the summer

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  • Once we’ve reached a peak on rates, they are likely to stay there for a while
  • Not going to say how long that will be
  • Some people in markets are pricing in rate cuts by end of the year, I’d be interested in how they are coming to that conclusion

There is a hint of sarcasm in his last point, as the narrative among central banks now is that they will keep rates higher for longer. As for the other remarks, they are consistent with what we have heard before from his colleagues.

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