VOT Research Desk
According to Reuters, European Central Bank (ECB) Governing Council member Isabel Schnabel stated on Thursday that interest rates will most likely need to be raised further into restrictive zone.
There is a risk that monetary and fiscal policy will tug in opposite directions in the current situation.
We remain prepared to confront unjustified fragmentation in financial markets. So far, incoming statistics indicate that there is little room for reducing the pace of interest rate adjustments. These remarks failed to elicit a noticeable market reaction, and the EUR/USD was last seen trading at 1.0410, up 0.15% on the day.
