ECB’s Schnabel: Central bank will hike rates but depending on incoming data
|European Central Bank (ECB) Governing Council member Isabel Schnabel made some comments on monetary policy normalization over the weekend, per Reuters.
Key quotes
"We will hike interest rates sometime after, as appropriate, in light of incoming data."
"The speed of normalization ... will depend on the economic fallout from the war, the severity of the inflation shock and its persistence.”
“Inflation risk was skewed towards even higher readings given sharply rising producer prices, structural economic changes like de-globalization and likely wage hikes.”
Market reaction
EUR/USD is on the defensive at around 1.1050, licking its wounds after Friday’s slump to near 1.1030. The US dollar index holds onto its recent gains amid a cautious start to the Fed minutes week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.