ECB’s Simkus: A rate cut this year is not very likely

European Central Bank (ECB) policymaker Gediminas Simkus said on Friday, “a rate cut this year is not very likely.”

Additional quotes

Inflation has probably peaked but core hasn’t.

March rate hike May not be the last half-point move.

A rate hike in May is possible, could be 25 bps or 50 bps but hardly 75 bps.

A rate cut this year is unlikely, although it’s possible in 2024, if the situation changes.

Meanwhile, ECB policymaker Bostjan Vasle said that they will need to rise rates by 50 bps in March, to stay restrictive.

Market reaction

The Euro is uninspired by the above comments, with EUR/USD eeping its range at around 1.0900, as of writing.