European Central Bank (ECB) Governing Council member and Bank of France President, Francois Villeroy de Galhau, said on Friday that “it’s the proof of the effectiveness of monetary policy, which fully justifies the halting of the sequence of rate hikes decided by the Governing Council.”

Additional takeaways

“The central bank will also be patient, holding rates at the current level “for a time proportionate to their full transmission.”

“The rate isn’t accurately measured — and no doubt this justifies lots of interpretations and suspicions — there’s a vague feeling that it’s increased. There’s no justification for that.”

Market reaction

The ECB commentary fails to deter Euro bulls, as EUR/USD keeps gains around 1.0865 so far this Friday.