"The big question is where the ECB goes from here"
The European Central Bank raised key interest rates by 25 basis points to 4 Percent. CEO Jörg Asmussen comments this decision.
Jörg Asmussen, Chief Executive Officer of the German Insurance Association (GDV):
"Today's 25 basis point rate hike was widely expected. The big question is where the ECB goes from here. Higher interest rates are slowly making their way into the real economy. In combination with weak growth data for Germany and Europe, that points to inflation falling further. Against this backdrop, markets expect the hiking cycle to end soon. But headline inflation is still well above the ECB's target, and core inflation also remains too high. As long as inflation rates exceed their target value by more than double, the ECB will stick to its path, and rightly so. I would not be surprised if markets had to correct their interest rate expectations, especially regarding the time of the first rate cut."