ECB's Holzmann says that the ECB could raise in September if July saw no new asset purchases

According to Reuters, Robert Holzmann, a member of the ECB Governing Board, stated that "if there were no new assets purchases in July, could take rates in September"

ECB's Holzmann says that the ECB could raise in September if July saw no new asset purchases

The key takeaways

Negative rates are an anomaly.

"Inflation will rise faster than anticipated, so raising rates would be slightly ahead of the curve than before it."

"The public understands that if inflation rises, it is up the ECB's turn to raise rates."

Reaction of the market

EUR/USD trades in the positive territory of 1.1130 despite being slightly lower during European trading hours.


 

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