It is too early to talk about rate cuts

European Central Bank (ECB) policymaker and Bundesbank Chief Joachim Nagel said on Thursday, “it is too early to talk about rate cuts. “

Additional comments

Rates must stay high to bring inflation back to target.

Still cannot be sure if we have reached a peak in rates.

The goal is in sight in terms of inflation, but not yet reached.

Inflation could still tick up in the coming months.

Does not see a hard landing for Eurozone economy.

Market reaction

At the time of writing, EUR/USD is trading 0.22% higher on the day at 1.0910.