ECB policymakers to discuss 50 bps rate hike this week - report

European Central Bank policymakers will reportedly discuss whether to raise interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday to tackle record-high inflation.

Reuters cited sources as saying that policymakers were also homing in on a deal to provide help for indebted countries like Italy on the bond market - provided they stick to European Commission rules on reforms and budget discipline.

It was understood the discussion about whether to hikes rates by 25 or 50 basis points was still wide open.

Citing people familiar with the situation, Bloomberg later reported that the proposal would be tabled by the monetary authority's chief economist, Philip Lane.

On 28 July, ECB chief, Christine Lagarde, had clearly signalled that rates would rise by 25bp at the following meeting.

She also left the door open to a half percentage point hike at September's policy meeting.

Since Lagarde last spoke, only a few ECB policymakers had spoken of the need to move more quickly, although several other central banks around the world had already made half percentage point increases since then.

Bloomberg added that money markets were pricing-in almost 50% odds of a half point move at Thursday's ECB meeting, up from the 20% odds that were being assigned the day before.