Euro Price Forecast: ECB Ponders QT vs Rate Hikes, EUR/USD Unmoved
The current situation within the eurozone has not changed much with geopolitical tensions remaining giving rise to the energy threats that seem to ebb and flow periodically. That’s being said, from an ECB standpoint, things are getting interesting. ECB officials seem to be divided in their opinions with some favoring a sustained aggressive stance while others are looking at introducing Quantitative Tightening (QT) sooner than expected to avoid such hawkish interest rate hikes. The ECB’s Knot has been vocal about using an earlier implementation of QT to quell inflationary pressures and thus reducing the peak rate
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