ECB's Simkus Says 25bp September Hike Won't Suffice as 50bp Move Is Unneeded

1 articles · Updated · newsquawk.com · Sep 1

Simkus said a September ECB rate increase alone would not be enough, while rejecting the need for a 50-basis-point step at that meeting.
That combination points to a preference for multiple 25bp hikes rather than one larger move, shifting attention from the next meeting to how far the overall tightening cycle may extend.
He also said he is not particularly worried by rising long-term bond yields and expects updated ECB projections to show a somewhat higher interest-rate path.
The remarks reinforce a hawkish tone already seen from other ECB officials, but markets will look for centrist backing and revised staff forecasts before fully repricing the path.