ECB’s Schnabel: Intends to raise rates by 50bps in March

Isabel Schnabel, a Member of the ECB’s Executive Board, wrote in press release entitled, 'Monetary policy in times of pandemic and war' that inflation momentum remains ‘quite elevated,‘ but cannot give all clear on inflation yet and that the ECB Intends to raise rates by 50bps in March.

Key notes

Underlying inflation rate still extraordinarily high.

Inflation slowing not yet linked to ECB policy.

Keeping ‘particularly close eye’ on core inflation.

Sees unions continuing to keep demanding higher wage.

EUR/USD update

The price of EUR/USD is under pressure and volatile ahead of Federal Reserve Chairman Jerome Powell speaking. However, a bullish outcome could come from dovish rhetoric.