ECB’s Wunsch: May policy decision is between 25 bps and 50 bps rate hikes

The European Central Bank (ECB) policymaker Pierre Wunsch said on Friday, “the policy decision in May is between 25- and 50-basis-point rate hikes,” although “size depends in large part on April core inflation.”

Additional quotes

“ECB could fully stop asset purchase programme (APP) reinvestments this year.”

“Market pricing of terminal rate reasonable; but no quick rate cuts likely thereafter. “

Market reaction

EUR/USD has entered a phase of consolidation near yearly highs, trading at around 1.1070, as of writing. The pair is up 0.22% on the day.