5/31, 2:28 PM (Source: TeleTrader)
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ECB's Kazimir: 200 bps in hikes needed for neutral

Member of the European Central Bank's Governing Council Peter Kazimir said on Tuesday that the neutral rate is "closer to 2% than 1%" and that the bank will have to hike interest rates for a total of 200 basis points (bps) to reach neutral. He added he expects a 25 bps rise in July and expressed openness to discussing a 50 bps hike in September, depending on inflation.

The National Bank of Slovakia governor warned that raising rates to neutral may not be enough to contain inflation, following the latest report that showed that euro area inflation reached a record high of 8.1% in May. Kazimir noted a "short-term" recession is possible in some European Union member states, but that it is "unlikely" across the bloc.

Baha Breaking News (BBN) / DJ