ECB's Holzmann: Inflation data back the need for a 50 bps hike

European Central Bank (ECB) Governing Council member Robert Holzmann argued on Wednesday that the record-high inflation print for the euro area supports the view that a 50 basis points rate hike will be needed.

Holzmann further added that it was clear that the rate hike guidance would also support the shared currency.

Market reaction

The immediate market reaction to these comments was largely muted. As of writing, the EUR/USD pair was trading at 1.0727, where it was down 0.06% on a daily basis.