Anna 
During her scheduled appearance on Thursday, European Central Bank (ECB) executive board member Isabel Schnabel highlighted services inflation as the “biggest concern.” She emphasized the emergence of a consensus indicating potential challenges ahead, characterizing the upcoming period as potentially “quite bumpy.
Schnabel also expressed apprehension regarding productivity growth, noting a trend of negative productivity growth over several quarters.
Echoing Schnabel’s sentiments, ECB Policymaker Madis Muller conveyed hesitance towards initiating consecutive rate cuts, indicating a cautious approach to monetary policy adjustments.
Market Reaction
Despite the remarks from ECB officials, the EUR/USD pair remained relatively unaffected, holding steady near 1.0725. The pair exhibited a modest increase of 0.25% on the day, indicating resilience to the concerns expressed regarding inflation and productivity.
