- ECB should aim to reach terminal rate by the summer
- ECB needs to be pragmatic about the pace of rate hikes
- French inflation likely to have peaked in 1H 2023, should fall to 4% towards the end of the year
Is inflation 'peak' the new 'transitory'? Only time will tell. With energy prices keeping lower, it makes sense to expect price pressures to decline but it may take quite a prolonged period before we actually see inflation fall significantly lower towards the 2% target coveted by central banks globally.
