European Central Bank (ECB) Governing Council member Yannis Stournaras emphasized the urgency of initiating key rate reductions soon, asserting his disagreement with the notion that the ECB must await action from the Federal Reserve before adjusting rates, according to Bloomberg reports on Thursday.
Stournaras advocated for a proactive approach to monetary policy, cautioning against excessive tightening measures. He further advocated for the implementation of two rate cuts before the summer recess.
Following Stournaras’s remarks, the EUR/USD pair faced mild downward pressure, resulting in a modest decline to 1.0935. This represented a 0.12% decrease on a daily basis as investors reacted to the statements.