ECB's Wunsch says Bank could consider raising its key interest rate as high as 4%

<p>ECB Governing Council member Pierre Wunsch and Governor of the National Bank of Belgium.</p><p>The European Central Bank have published his remarks as they were embargoed until Friday. </p><ul><li>"If the core inflation would remain at the level we see today in Europe of above 5%, and if we don't get clear signals that core inflation is going down, we will have to do more"</li><li>"For me, looking at rates of 4% would not be excluded," </li><li>"But I want to insist I won't make any judgment on where the rates would have to go without seeing the developments of core inflation."</li></ul><p>---</p><p> The ECB raised its deposit rate by 50 basis points in February to 2.50%</p><p>The Bank has flagged another +50bp rate hike at the March 16 meeting. President Lagarde spoke Thursday:</p><ul><li><a href="https://ift.tt/lmXKqIy" target="_blank" rel="follow" data-article-link="true">ECB's Lagarde: We still have to pursue higher rates, don't know the peak yet</a></li><li><a href="https://ift.tt/7iu3kGU" target="_blank" rel="follow" data-article-link="true">ECB's Lagarde: Price decline is not stable</a></li></ul><p>Markets are pricing in another 50 basis-point hike by the ECB on May 4 and a peak around 4% by the end of 2023.</p> This article was written by Eamonn Sheridan at www.forexlive.com.

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