Citing a source familiar with the matter, Reuters reported on Wednesday that European Central Bank (ECB) policymakers are leaning toward a 50 basis points (bps) rate hike on Thursday. 

Despite turmoil in the banking sector, policymakers expect inflation to remain too high in the Eurozone. Additionally, the Governing Council doesn't want to damage its credibility by ditching the 50 bps rate increase after having repeatedly noted that this was their intention.

Market reaction

EUR/USD showed no immediate reaction to this headline and the pair was last seen trading virtually unchanged on the day at 1.0735.