ECB’s Holzmann: Another rate hike or two possible

Dhwani Mehta FXStreet

Speaking at the Reuters Global Markets Forum on Thursday, European Central Bank (ECB) policymaker Robert Holzmann said that “we are not yet at the highest level for rates," adding that "another hike or two are possible.”

Additional quotes

“August inflation data is a conundrum for the central bank.”

“Data shows that inflation is still persistent.”

“As long as labor market hot, it's difficult to convince workers to accept lower wage rises.”

“We should consider ending PEPP reinvestments before the end of 2024.”

“Based on current info, wouldn't exclude rate hike in Sept but haven't made up my mind yet.”

“We are much closer to the terminal rate but likely not yet there.”

Market reaction

EUR/USD is consolidating the latest leg lower near 1.0875, still 0.47% lower 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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