European Central Bank (ECB) Governing Council Member and President of the Deutsche Bundesbank, Joachim Nagel, said during the European trading session on Tuesday that the baseline includes two interest rate hikes in the near term.
Nagel added, “Our mandate requires us to act if inflation expectations de-anchor, and the data will decide the central bank’s decision in June
Market reaction There seems to be no impact of ECB Nagel’s comments on the Euro (EUR). As of writing, EUR/USD is 0.33% down to near 1.1745 due to US Dollar’s outperformance. 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. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates.