ECB’s Panetta: It would be incautious to act on rates before seeing Q2 data

Dhwani Mehta FXStreet

Commenting on a potential July rate hike, European Central Bank (ECB) executive board member Fabio Panetta said Thursday, “it would be incautious to act on rates before seeing Q2 data.”

“The ECB could end negative rates cycle after deciding when to conclude QE in Q3,” Panetta said.

He went on to say that the ECB needs “to fight inflation we also need to strengthen European cooperation.”

Additional comments

Digital euro would be solid, reliable currency, could be issued in four or five years if ecb and European authorities decide to do so.

Supporting Ukraine and working to bring the war to a quick end is also the most effective way to reduce inflation quickly.

Market reaction

EUR/USD has stalled its Fed-inspired recovery rally but holds above 1.0600. The pair is currently trading at 1.0614, unfazed by the above comments, down 0.05% 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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