ECB’s Villeroy: A 50 bps rate hike isn't part of the central bank consensus

Dhwani Mehta FXStreet

European Central Bank (ECB) Governing Council member and Bank of France head Francois Villeroy de Galhau poured cold water on a 50 bps summer rate hike expectations.

Villeroy said that a 50 bps rate hike isn't part of the central bank consensus.

Additional comments

“ECB is in the process of normalizing policy.”

“There is no trade-off between growth and inflation.”

Market reaction

EUR/USD’s upside lost traction on the above comments, as the pair now trades at 1.0705, adding 0.16% so far.

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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