"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.
