ECB's Patsalides: Interest rates could go either way next

ECB's Patsalides: Interest rates could go either way next

• Comments from the ECB policymaker

• The present interest rates are appropriate if inflation develops as projected
• Unless there's any other significant development, there's no need to take action soon
• Risks to inflation are balanced
• In this context, interest rates can go either way next
• I wouldn't like to exclude a rise in interest rates if the need arises
• No reasons to be too worried about a more permanent undershoot of inflation

Patsalides joins Schnabel in considering rate hikes if the need arises. This would put him into the neutral/hawkish camp. Talking about rate hikes now is of course premature, but it could get more traction in 2026 depending on the economic and inflation developments.