ECB's Wunsch: 25 or 50 bps rate hike in May possible

Market news

3 February 2023

ECB's Wunsch: 25 or 50 bps rate hike in May possible

European Central Bank (ECB) Governing Council member Pierre Wunsch told Reuters on Friday that the ECB won't go from a 50 basis points rate hike in March to a zero in May. Wunsch added that a 25 bps or a 50 bps hike was possible in May.

"If core remains persistent, if we keep seeing core momentum being close to 5%, for me a terminal rate of 3.5% would be a minimum," Wunsch further explained and noted that the market reaction to ECB's hawkish tone on Thursday was surprising.

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen posting small daily gains at 1.0930.

Currencies. Daily history for Friday, February 3, 2023

Commodities. Daily history for Thursday, February 2, 2023

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