European Central Bank's (ECB) Governing Council member Francois Villeroy de Galhau said on Tuesday, “ECB will maintain its rate at 4 pct for a sufficiently long time, as it is an efficient remedy.”
Inflation is a sickness, interest rates are the medicine, the medicine is beginning to work.
Current ECB rate is at a good level, better to be patient now.
Once inflation comes back towards 2, ECB rate can be lowered.
The ECB is not at the point today where we could cut rates.
EUR/USD is testing lows near 1.0675 on the above comments, down 0.12% on the day.
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