The rise in price pressures in the Euro area this year is seen as temporary, the European Central Bank (ECB) executive board member Isabel Schnabel provided a summary of Sunday’s interview with a German magazine in a tweetstorm on Tuesday.
Key quotes
“The ECB is not worried about current high inflation rates which they "estimate is that it will fall significantly as of next year".
“Current high inflation rates do not mean that monetary policy will be tightened soon.”
Market reaction
EUR/USD fails to find any respite from the conciliatory comments from the ECB official, as it flirts with daily lows of 1.1730, down 0.13% so far. The US dollar bounce remains the main market driver.
