European Central Bank (ECB) policymakers are prepared to back at least two 25 basis points rate hikes this year, MNI reports, citing Eurosystem sources.

The report supports comments from the ECB policymaker Klaas Knot, who floated a 50-bps rate hike this year.

“There are officials downplaying ECB policymaker Klaas Knot's idea of a 50-bps rate hike, such a possibility is also gaining traction among members of the governing council, MIN reports.

Market reaction

EUR/USD is erasing all of its early gains to now trade neutral at 1.0468, as of writing.