The European Central Bank's Governing Council member Bostjan Vasle said on Thursday that in his view the ECB has to continue tightening monetary policy. The official added that the options he is now considering for the ECB's May meeting are a 25- and a 50-basis-point rate increase, but noted that it is too early to decide the pace of the next move.
According to Vasle, the eurozone's headline inflation is coming down but the ECB's policymakers are all focused on core inflation, which is still moving in the wrong direction. "This is, of course, not unexpected given the tightness of the labor market and still not fully materialized pass-through effects," he admitted.