Directly following the European Central Bank Governing Council’s last monetary policy meeting, we inclined to the opinion that another 50bp hike in May was somewhat likelier than the only other reasonable alternative of 25bp. This view was motivated by the stated determination of the ECB to do more, by the somewhat hawkish tone of the 16 March decision and press conference (in particular the apparent failure to be swayed by banking sector turbulence) and not least by the intention, expressed to Econostream, of one normally not terribly hawkish Council member to support 50bp in May as well. With the renewed bout of ... (full story)