ECB’s Simkus: The next rate increase needs to be substantial

European Central Bank (ECB) policymaker Gediminas Simkus hints at a potential 75 bps rate hike at the next policy meeting.

Additional quotes

“We're moving closer towards the neutral-rate territory.”

“It is not the case that 75 basis points is the new norm.”

“Expect inflation forecasts to be revised up.”

“I expect ECB inflation projections to be raised in December.”

“QT discussion in December should be about the start date and amounts.”

Market reaction

EUR/USD remains unfazed by the above comments, trading around 0.9970, up 0.06% on the day.