The “case for 50 bps rate hike in March remains solid,” European Central Bank (ECB) Chief Economist Philip Lane said in a Reuters interview on Tuesday.

Additional quotes

“Positive supply shocks since December, rate hikes, have curbed inflationary pressures.”

“Intermediate stage pricing pressures begin to fade.’

“Need lower inflation projections, lower realized underlying inflation for rates hikes to end.”

“Forward-looking indicators for food, energy, goods suggest inflation slowdown.”

“Rate plateau should be held for some time; rates could be in restrictive territory for a number of quarters.”

“Supply-side component of services inflation to ease; wage impact uncertain.”

Market reaction

The Euro remains little impressed by the above comments, as EUR/USD loses 0.19% on the day to trade at 1.0585 at the time of writing.