The key rate consistent with our goal would be in restrictive area, she added, if there was any belief that strong inflation posed a threat to our ability to keep inflation expectations in check.
ECB policymakers have talked about a pause in the rate hike cycle, with the ECB reaching a so-called “neutral” level that neither stimulates nor constrains economic growth, but a growing number of Governing Council decision-makers now see the risk of having to raise the rate higher.
Inflation is already above 9% and may continue to rise, while long-term inflation expectations, a key focus for rates, are now climbing above the 2% target.
source: ecb.europa.eu
