As Reuters reported, the new ECB's model, called Target-Consistent Terminal Rate, showed the Central Bank needed to raise its deposit rate to 2.25% – or even less than that if at the same time it shrinks its balance sheet – to bring inflation back to its 2% goal (which is much less required to curb inflation than the market had assumed). As it was noted by four different sources, the new model could serve as a key input in future decisions. The next rate meeting will be conducted on October 27.
Source: xStation 5
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