- Extent and duration of monetary policy matters now that rates are in restrictive territory
- Smaller rate hikes can ensure better calibration of policy
- Headline inflation may fall below 3% towards the end of the year
- ECB must now consider risks of overtightening
These are all remarks that signal that we are nearing the end zone in the ECB's tightening cycle. The March 50 bps rate hike could very well be the last one on the cards, at least in terms of what is confirmed. What comes after will definitely be a toss up depending on the data, and markets are also rather unsure of that as well.
