Schnabel: ECB may need to hike rates in July

European Central Bank member, Isabel Schnabel, told a German newspaper Handelsblatt on Tuesday that the ECB may need to raise interest rates as soon as July to stop high inflation from getting entrenched.

EUR/USD is higher on the day by some 0.23% yet has not reacted to the comments, sticking to the 1.0530s.

Key Quotes:

“Now it’s not enough to talk, we have to act,” Schnabel was quoted as saying. “From today’s perspective, I think a rate hike in July is possible”.

”Before then the ECB must end its bond purchase scheme, probably at the end of June, Schnabel added, warning inflation is becoming increasingly broad.”.