• No definitive number of rate hikes as forward guidance is abandoned
• Decision on future path and pace of rate hikes are on a meeting-by-meeting basis
• The destination is clear, and we are not there yet
• Full interview

Since the policy meeting last week, there is a firm climb down from mentioning that there will be ‘several’ more rate hikes as she did previously. Her latest remarks above essentially says that while recession risks are rising, the ECB is still committed to tackling inflation. As much as that sounds resolute, it’s only a matter of time before they start being less aggressive. And from the tone of her communique, we are already starting to see things change.