ECB Kazaks sees rates being raised past July

Dhwani Mehta FXStreet

European Central Bank (ECB) policymaker Matin Kazaks said on Tuesday that he sees the central bank raising interest rates beyond the July meeting if inflation remains too high.

He added that market bets on rate cuts in early 2024 are wrong.

Additional comments

Softness of the economy is unlikely to deal with inflation.

There are still strong risks of persistence in inflation.

Don't think that in July we'll be comfortable enough to say "we're done".

Market reaction

EUR/USD is holding the rebound near 1.0925 on Kazaks’ hawkish remarks, adding 0.20% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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