European Central Bank
In an interview with CNBC, CNBC On Monday, the policy maker reportedEuropean Central Bank Malta Central Bank Governor Edward Chikluna said the ECB may continue to raise interest rates, but is unlikely to adopt another large 75bp increase.
Shiklona stressed that this will not be the only increase that the bank will approve in the coming period, but that it will only be the first in a series of hikes over the coming months.
The European Central Bank policy maker also made it clear that he does not believe that a 75 basis point hike will be the norm in the short term, arguing that pressures on Europe’s main source of inflation – energy and food – will ease.
Scicluna noted that the source of inflation faced by the European Central Bank is not caused by demand – as is the case in the United States – but by a lack of supply, and therefore, the motives driving the monetary policy actions of the European Central Bank differ from those driving the policy of the US Federal Reserve.
The ECB member also warned that the current measures used by European governments to mitigate the impact of rising energy costs on consumers may create other new inflationary pressures.
