Philip Lane, chief economist at the European Central Bank, said rate hikes would have to continue beyond the March meeting, when a 50 basis point rate hike is considered almost 100% certain. German two-year yield fell 2 basis points to 3.20%. “Current information on core inflationary pressures suggests that further rate hikes after our March meeting are appropriate, while an accurate correction after March would reflect information contained in upcoming macroeconomic projections, along with upcoming data on inflation and monetary transmission,” said Lane. He outlines the data the ECB will focus on: inflation data for March and April, first quarter GDP, a range of sentiment indicators and the ECB’s own surveys, employment updates and Wages, data on credit creation and bank lending and stability program updates from member countries.
