ECB’s Holzmann: Central bank could be tightening policy quicker than markets expect

"There is the possibility that we may be able to normalize monetary policy sooner than most financial market experts expect," the European Centra Bank (ECB) policymaker Robert Holzmann said in a contribution to the Eurofi Magazine on Wednesday.

He said: "I see potential upward price pressures coming from persisting global supply bottlenecks, mounting labor shortages in several sectors, pent-up demand and higher savings triggering a stronger spending spree, cost effects from effectively implementing climate change policies, and last but not least, higher headline inflation getting entrenched into inflation expectations.”

Market reaction

EUR/USD remains unfazed below 1.1850 on the hawkish comments. All eyes remain on Thursday’s ECB decision. The spot trades flat at 1.1840, as of writing.

About the Author

You may also like these