European Central Bank (ECB) Governing Council member Ignazio Visco said on Wednesday that the bank's monetary policy "will have to remain prudent" and that it should depend on incoming data "as it becomes available." He confirmed the ECB should adopt a 50 basis-point interest rate hike at its meeting next week, as planned.
Visco said the ECB's decisions must not endanger financial stability and strive to "minimize the negative effects on the still fragile recovery." He added that he "does not appreciate" other members' remarks on prolonged rate hikes, arguing that the ECB agreed not to offer forward guidance to the general public. Previously, members such as Joachim Nagel warned that "further significant interest rate steps might be necessary" after March.
