Rate rises: the ECB is not done yet

The European Central Bank (ECB) raised its deposit facility rate by another 50 basis points (bps) to 2.5% at the February meeting, bringing its policy rate into restrictive territory. The ECB made clear it continues to expect to raise interest rates significantly, aiming to ensure the timely return of inflation to its medium-term target of 2%. Euro area headline inflation for January is expected to have been about 8.5%, and core inflation to again clock in at 5.2% when final numbers are released later this month (both 8.5% and 5.2% appeared in preliminary estimates). A peak policy rate of...