ECB's Kazaks: A rate hike is possible as soon as July

Dhwani Mehta FXStreet

Commenting on the European Central Bank’s (ECB) monetary policy outlook on Wednesday, policymaker Martins Kazaks said that “a rate hike is possible as soon as July.”

Additional quotes

Gradual approach doesn't mean slow response.

ECB doesn't need to wait to see stronger wage growth.

Ending APP early in Q3 is possible and appropriate.

0% is not a cap for deposit rate facility.

Market reaction

The shared currency jumped nearly 30-pips against the US dollar on these hawkish remarks, driving EUR/USD to fresh daily highs of 1.0867.

The spot is currently trading at 1.0859, still up 0.67% 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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