MFS: ECB delivers 'no brainer' rate hike, further tightening possible
Peter Goves, Global Head DM Fixed Income Strategy Research at MFS Investment Management, reacts to yesterday's ECB meeting:
'The ECB delivered the expected “no brainer” rate hike today and continues to signal a high degree of vigilance. Policymakers acknowledged that 'inflation is set to remain well above target for an extended period,' reinforcing the view that further tightening remains possible should the ECB consider it necessary. As a result, markets are likely to continue pricing a degree of additional hike risk into the curve for the time being.'
