A similar or even bigger move is now expected on September 8, partly on sky-high inflation and partly because the US Federal Reserve is also moving in exceptionally large steps.
"Both the likelihood and the cost of current high inflation becoming entrenched in expectations are uncomfortably high," Schnabel said."In this environment, central banks need to act forcefully." "Frontloading rate hikes is a reasonable policy choice," Kazaks, told Reuters."We should be open to discussing both 50 and 75 basis points as possible moves. From the current perspective, it should at least be 50."The ECB is trying to stimulate the economy and remains far from the neutral rate, which is estimated by economists to be around 1.5%.
"In my view, we could be there before the end of the year, after another significant step in September," Villeroy said.