European Central Bank (ECB) Governing Council member and Bank of France President, Francois Villeroy de Galhau, said on Tuesday that “at this stage further rate hikes not right thing to do.”
Additional takeaways
Events in Israel will add to economic incertitude.
We are particularly wary about oil price developments over Israel situation.
We see clear tendency of inflation to decrease despite situation in Israel.
Israel situation no reason for us at present to tweak inflation prospects, still see landing at around 2 pct by 2025.
Interest rates now are on a good level.
Market reaction
The ECB commentary has little to no impact on the Euro, as EUR/USD hold steady at around 1.0565 so far this Tuesday.