The European Central Bank's (ECB) Governing Council member Pablo Hernandez de Cos said on Monday that the ECB aims to avoid premature tightening of the monetary policy in response to inflation running above its 2% target when such deviation is expected to be temporary. In the absence of further shocks, inflation should subside in the coming year, the policymaker added. He also noted that risks to the growth outlook remain tilted to the downside.
It can be concluded that we are unlikely to witness interest rate hikes next year or even for some time thereafter, de Cos said.