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ECB-linked official backs October rate hike citing firmer core inflation
Money markets assign a 57.0% chance of an October hold and an 84.0% chance of a December rate hike, according to Prime Terminal.
ECB-linked policymaker Alexander DeMarco, Governor of the Central Bank of Malta and a member of the ECB’s Governing Council, said stronger core inflation could justify ECB action and he supports a rate hike in October, FXStreet reported.
In comments on Tuesday, DeMarco also said he would not rule out an October move, while noting recent conditions including a rise in long-term bond yields as a concern.
FXStreet cited Prime Terminal data showing money markets priced a 57.0% chance the ECB holds rates unchanged at the October 29 meeting, and an 84.0% chance of a rate hike in December.