ECB’s Schnabel: A June rate cut is likely

Dhwani Mehta FXStreet

Reuters reported comments delivered by European Central Bank (ECB) policymaker Isabel Schnabel during an interview conducted on May 16.

Key quotes

A June rate cut is likely.

The decision won't be made until the day the Governing Council meets.

If data gives us confidence that price target can be met sustainably, a June rate cut will be likely.

Some elements of inflation are proving persistent, services in particular.

Would caution against moving too quickly on rate cuts.

Market reaction

EUR/USD is holding the rebound near 1.0830, despite the dovish comments. The pair is up 0.17% 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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