French central bank chief Francois Villeroy de Galhau said on Sunday that tension in the Middle East is unlikely to drive up energy prices and should not affect the European Central Bank’s (ECB) plans to begin cutting interest rates in June, per Reuters.
Key quotes
"Barring surprises, there is no need to wait much longer.”
"It should be followed by further cuts, at a pragmatic pace,"
"At the moment, the conflict is not leading to a marked rise in oil prices. If this were ever the case, we would have to analyse monetary policy for whether this shock is temporary and limited, or whether it is transmitted—beyond commodities—to underlying inflation”.
Market reaction
These comments have little to no market reaction to the Euro. The EUR/USD pair is trading at 1.0659, adding 0.03% on the day.
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