ECB Governors See More Tightening Ahead, With October in Play

• European Central Bank policymakers expect further policy tightening in the months ahead to fight a war-fuelled rise in inflation and could move again as soon as October. The ECB raised borrowing costs on Thursday for the second time this year and warned that price pressures could prove lasting, fuelling bets on even more interest rate hikes.
• Policymakers are growing more worried about inflation after a sharp rise in gas and oil prices in recent months, which they think may require higher rates to stop it from spreading to the rest of the economy, the sources said.
• They noted that a move might come at the ECB's next meeting on October 29, although that would depend entirely on incoming data and developments in Iran.
• Meanwhile, ECB President Christine Lagarde said during a news conference on Thursday that she could not anticipate what the next move may be and reaffirmed the bank's mantra for "meeting-by-meeting," "data-dependent" decisions.

(Source: Reuters)