MADRID – The European Central Bank is unlikely to raise interest rates in the second half of 2022, European Central Bank policymaker Pablo Hernandez de Cos said on Monday.
De Cos said rate hikes were not even considered in “a period close to the second half of 2022″ as the ECB‘s conditions for such a move were not met by its forward-guidance policy.
ECB‘s governing council member also said that inflation will be below its medium-term target of 2% in 2023.
“In December there will be new forecasts, we will have to see where these forecasts stand,” he told a financial event.
The ECB officially still forecasts inflation back under target already next year. But more and more policymakers are now saying 2023 and even Lagarde said the drop in inflation is going to be slower.