ECB’s Välimäki: Must not jump the gun on rate cuts

European Central Bank (ECB) Governing Council member,” Tuomas Välimäki, suggested on Tuesday that we “must not jump the gun on rate cuts.”

Additional comments

Better to wait a bit longer than cut rates prematurely.

Inflation is on the right track but the job is not done.

Restrictive monetary policy is still called for.

Soft landing for the economy is still the baseline but risks are tilted to the downside.

Market reaction

EUR/USD was last seen trading at 1.0887, down 0.55 on the day.