ECB, BoE policymakers comment on Inflation in Eurozone, UK

European Central Bank Governing Council member Yannis Stournaras told CGTN Europe on Wednesday that he wasn’t sure whether the ECB would hike rates again after 25 bps increase next week.

“We might have one further move next week of 25 basis points, but I’m not sure that we’re going to go further than that,” Stournaras said and further explained.

“The argument that inflation is falling and we have found out that we are at the optimal point that further increases of interest rates might damage the economy.”

The EUR/USD pair stays under modest bearish pressure following these comments and was last seen losing 0.38% on the day at 1.118

Bank of England Deputy Governor Dave Ramsden acknowledged that the Consumer Price Index (CPI) inflation has begun to fall significantly in the UK but noted that it was still “much too high,” per Reuters.

Key takeaways
“If there is evidence of more persistent pressures, then further tightening in monetary policy would be required.”

“Monetary policy decisions will address the risk of more persistent strength in domestic wage and price setting.”

“I support a carefully considered increase in the pace of reduction in the stock of gilts in the twelve months ahead.”

“I want QT to set a gradual and predictable pace for unwind and to let it operate in the background.”

“QT is having only a limited impact on gilt yields.”

These comments failed to help Pound Sterling find demand. As of writing, GBP/USD was down more than 1% on the day at 1.2895.