European Central Bank (ECB) policymaker Madis Muller is making comments on the central bank’s inflation and interest rates outlook on Wednesday.

Key quotes

It is very likely that the ECB will hike by 25 bps more than once.

Core inflation shows no signs of slowing yet.

Fiscal policy is boosting inflation, making the ECB’s job tricky.

It is probably too optimistic to see the ECB rate cut in early 2024.

Meanwhile, Villeroy de Galhau said that “interest rate hikes are overall a benefit to French and European banks.”

Market reaction

At the time of writing, EUR/USD is holding lower ground near 1.0675, down 0.55% on the day