European Central Bank (ECB) policymaker and the head of Belgium’s central bank, Pierre Wunsch, said in the European trade on Tuesday that inflationary pressures in the Eurozone economy could stay above the 2% target for some quarters, adding that the central bank might need to…
liver another interest rate hike. In the policy meeting this month, the ECB raised its policy rates by 25 basis points (bps)
Additional remarks We know inflation is to be above target for some quarters. A quick ECB move doesn’t necessarily mean a July move. Market reaction There seems to be no immediate reaction by the Euro (EUR) after ECB Wunsch’s remarks.
As of writing, EUR/USD trades 0.15%% higher to near 1.1400. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region.