'ECB will probably keep raising rates beyond 2% level'

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'ECB will probably keep raising rates beyond 2% level'
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The ECB will probably continue to raise interest rates beyond 2%, but 'jumbo' rate hikes will not become a new habit, France's central bank chief said today.

The European Central Bank will probably continue to raise interest rates beyond 2%, but"jumbo" rate hikes will not become a new habit, France's central bank chief said in a speech in Tokyo today.

Despite that rapid pace, markets still expect the bank to hike rates further to tame sharp, broad-based inflation. "Beyond this level, we will probably continue to raise rates, but we may do so in a more flexible and possibly less rapid manner. Jumbo rate hikes will not become a new habit," he said.

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