ECB's Stournaras: Inflation is falling, more tightening could hurt economy

Eren Sengezer FXStreet

European Central Bank Governing Council member Yannis Stournaras told CGTN Europe on Wednesday that he wasn't sure whether the ECB would hike rates again after 25 bps increase next week, per Reuters.

"We might have one further move next week of 25 basis points, but I'm not sure that we're going to go further than that," Stournaras said and further explained:

"The argument that inflation is falling and we have found out that we are at the optimal point that further increases of interest rates might damage the economy."

Market reaction

EUR/USD stays under modest bearish pressure following these comments and was last seen losing 0.38% on the day at 1.1183.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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