Impact of policy tightening is still unfolding

European Central Bank chief economist Philip Lane said on Thursday that the impact of monetary policy tightening is still unfolding and added that there is a continued transmission of interest rate hikes to broader financing conditions, per Reuters.

Earlier in the day, ECB policymaker Pablo Hernandez de Cos said that the next policy move will be a rate cut but noted that they still need some time to figure out the exact timing of the policy pivot

Market reaction

These comments failed to trigger a noticeable reaction in EUR/USD. At the time of press, the pair was up 0.15% on the day at 1.0744.

Source: https://www.fxstreet.com/news/ecbs-lane-impact-of-policy-tightening-is-still-unfolding-202402151228