Top of ECB rates cycle an open question, ECB’s Herodotou says

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FILE PHOTO: European Union flags flutter outside the European Central Bank (ECB) headquarters in Frankfurt

NICOSIA (Reuters) – The European Central Bank has expedited its exit from ultra easy monetary policy to bring inflation back to target but it remains open how high interest rates will go, ECB policymaker Constantinos Herodotou said on Wednesday.

“The increase we decided last week does not mean there has been a foregone conclusion on the final level of interest rates,” Herodotou, the head of the Cypriot central bank, told a conference. “We have to reassess regularly the course of our monetary policy in light of incoming data.”

The ECB raised rates in July and September by a combined 125 basis points, and its key rates stand at their highest level since 2011.

(Reporting by Michele Kambas; Writing by Balazs Koranyi; Editing by Tomasz Janowski)