European Central Bank (ECB) executive board member Fabio Panetta said on Wednesday that he hopes that the ECB cuts key rates in September, as reported by ANSA news agency.

"The end of the tightening has already started," Panetta noted and added:

"I think it's reasonable to expect that from here on we will be going into a phase of easing monetary conditions because inflation is falling and the world economy is slowing down."

Market reaction

These comments failed to trigger a noticeable market reaction. At the time of press, EUR/USD was trading at 1.1125, where it was virtually unchanged on a daily basis.