The European Central Bank (ECB) Governing Council member Klaas Knot said that he expects to begin lowering borrowing costs in June, even though it’s premature to say inflation has been defeated.  He further stated that it was rare for rate hikes as the ECB has carried out and did not hurt the economy and that inflation had remained low without triggering a recession.

Key quotes

“I personally penciled in June to start cutting rates,”  

“Where we take it from there is data dependent.”

Market reaction

At the time of writing, the EUR/USD pair is trading lower at 1.0883, down 0.05% on the day.