The European Central Bank's Governing Council member Pierre Wunsch said Friday that he does not think that the ECB will go from a 50-basis-point interest rate increase in March to no rate hike in May. He also suggested that a 25- or 50-basis-point rate hike in May is possible. "I will certainly not exclude another 50 basis points but that’s going to be dependent on the data,” Wunsch added.
In the official's opinion, if core inflation remains persistent, a terminal rate of 3.5% would be a minimum.
Also, Wunsch noted that the ECB's Thursday decision is a hawkish one so the market reaction has been surprising for him.