Citing five sources with direct knowledge of the discussion, Reuters reported on Thursday, European Central Bank (ECB) policymakers are converging on a 25 basis points (bps) interest rate hike in May.

Additional takeaways

“Though the debate is not over, with one small group still making case for a 50 bps hike in May; another small group advocating no change.”

“The baseline in the ECB’s March economic projections is seen as largely intact.”

“The peak in rates is now in sight and that this "last mile" is safer to navigate in smaller steps.”

“Another argument put forward for gradualism was that the ECB's deposit rate, now at 3%, is at a level which restricts growth.”

Market reaction

At the time of writing, EUR/USD is keeping its range play intact near 1.1000, up 0.05% on the day.