The head of economic policy at the European Central Bank (ECB), Pablo Hernández de Cos, He said on Wednesday that the rise in inflation is being very persistent and that it has also widened, Reuters reported.
key statements
“We still have some way to go with rate hikes, the specific level that interest rates need to reach to be consistent with this target is uncertain.”
“Rises in interest rates precede the reduction of our balance sheet.”
“After first allowing markets to absorb the significant TLTRO III writedowns, the ECB’s balance sheet normalization could be followed by the completion of the full reinvestment of the app portfolio.”
“Yields already reflect, at least to some extent, current expectations about the implementation of the balance sheet drawdown.”
“Need for the reduction of the financial balance in the euro area to be very gradual and predictable.”
“Future decisions should take into account the higher probability of a recession that we are currently seeing.”
Market reaction
The EURUSD It dipped slightly from session highs on these comments and was last seen up 0.62% on the day to 1.0412.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
