Citing eurosystem sources, MNI reported on Monday that the European Central Bank was planning to go ahead with the 50 basis points (bps) rate hike at its upcoming meeting despite sliding market rate expectations amid Silicon Bank Valley turmoil.

MNI further explained that dovish policymakers were likely to argue that the changing economic environment would warrant more caution in regard to policy tightening.

Market reaction

EUR/USD showed no immediate reaction to this headline and was last seen rising 0.8% on a daily basis at 1.0725.