Anna 
In an interview conducted on May 16, European Central Bank (ECB) policymaker Isabel Schnabel delivered comments hinting at the possibility of a rate cut in June. Here are the key quotes from her remarks:
Key Quotes:
Likelihood of June Rate Cut: Schnabel indicated that a rate cut in June is likely.
Timing of Decision: She clarified that the decision regarding the rate cut won’t be made until the day the Governing Council meets.
Data-Driven Decision: Schnabel emphasized that if data provides confidence that the ECB’s price target can be met sustainably, a rate cut in June is probable.
Persistent Inflation Elements: She noted that some elements of inflation, particularly in the services sector, are proving persistent.
Caution Against Rapid Action: Despite the possibility of a rate cut, Schnabel cautioned against moving too quickly on rate cuts.
Market Reaction:
Despite the dovish comments from Schnabel, the EUR/USD pair is holding its rebound near 1.0830. As of the latest update, the pair is up 0.17% on the day.
Schnabel’s remarks have provided insights into the ECB’s stance on monetary policy, indicating a potential shift towards accommodative measures to address inflation concerns. However, market participants are closely monitoring further developments and data releases for clearer signals regarding the ECB’s policy direction in the coming months.
