In an interview with Politico on Monday, Robert Holzmann, a policymaker for the European Central Bank (ECB), stated that "a rate cut is not a foregone conclusion for me at all."
Other quotations
According to recent data, December inflation was significantly higher than 2%.
That's probably going to be true for January as well.
If the ECB lowers rates when inflation increases more quickly than anticipated, it runs the risk of damaging its reputation.
Reaction of the market
At 1.0312, the EUR/USD exchange rate was up 0.28% for the day.
Other quotations
According to recent data, December inflation was significantly higher than 2%.
That's probably going to be true for January as well.
If the ECB lowers rates when inflation increases more quickly than anticipated, it runs the risk of damaging its reputation.
Reaction of the market
At 1.0312, the EUR/USD exchange rate was up 0.28% for the day.
