Central Bank of Ireland Governor Makhlouf said that the ECB supports the policy rate hike in the next two meetings, a level comparable to last month’s 50 basis points increase.
Makhlouf, in his statement, said, “We should continue to increase the rates in our meeting that will take place next week and in our March meeting, taking a precedent step towards the decisions we made in December.”
“Our future policy decisions need to continue to depend on data, given the ongoing uncertainty.” Makhlouf said that bringing inflation into the target range is the rule for the welfare of the economy and society.
In his speech, where he emphasized that inflation is still very high, Makhlouf stated that interest rates will need to increase significantly at a “steady pace” to ensure that inflation returns to its medium-term targets of 2 percent in a timely manner.
“Raising the policy rate is also an indication of our commitment to price stability.” Makhlouf said, adding that the increase in the interest rate gives a clear message that inflation will not be allowed to stay above 2 percent.
