European Central Bank (ECB) Governing Council member Gabriel Makhlouf said on Tuesday that the ECB could raise rates above 3.5% and hold them there for the remainder of the year, the Wall Street Journal reported.
Earlier in the day, ECB policymaker Mario Centeno said that the full impact of rate hikes may not reach the European economy.
Market reaction
EUR/USD edged slightly higher with the initial reaction to Makhlouf's comments. As of writing, the pair was trading at 1.0760, where it was up 0.37% on a daily basis.
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