ECB should start with quarter-point hike in July, Muller says

“Given the inflation outlook, it’s appropriate to start raising interest rates in July” by a quarter point, Muller said in an interview in Dubrovnik, Croatia, on Sunday

In contrast to calls by colleagues from other Baltic countries to at least consider a half-point increase for the first move, the Estonian governor said officials should wait until September to raise by that amount. Picture: Alex Kraus/Bloomberg

The European Central Bank should stick with its plan of starting off tightening with only a quarter-point interest-rate hike, said Madis Muller, the policy maker whose economy has the region’s fastest inflation.

In contrast to calls by colleagues from other Baltic countries to at least consider a half-point increase for the first move, the Estonian governor said officials should wait until September to raise by that amount.