• We must stay the course in battle against inflation
  • Cannot say where the terminal rate will be but should be there by the summer
  • ECB is pragmatic regarding rates and policy
  • The pace of rate hikes is probably less important this year
  • Lagarde's earlier 50 bps guidance is still valid

A bit of pushback by Villeroy but his comment on the importance of the pace of rate hikes is a bit subjective. To markets, that is pretty much the most important aspect right now for all major central banks as the tightening cycle starts to near its end game. The euro is back up today as the dollar is seen softer across the board, with EUR/USD up 0.3% to 1.0825 now.