ECB's Centeno: We are reaching the time when monetary policy may pause, we are very close

“We are reaching the time when monetary policy may pause,” said European Central Bank (ECB) policymaker Mario Centeno early Thursday in Asia.

“We’re very close,” added ECB’s Centeno.

Reuters also reports that in an interview with Portugal’s broadcaster RTP, the governing council member said that the ECB "must be cautious so that the impact of rising interest rates on the economy do not exceed the minimum necessary to control prices."

It’s worth noting that the policymaker was the only exception among a slew of European speakers who backed further rate hikes at the ECB Forum on central banking in Sintra. That said, ECB’s Centeno quoted quick easing in inflation while adding, “over-hiking isn't an acceptable position.”

EUR/USD stays pressured

Following the downbeat comments, EUR/USD retreats towards 1.0900, close to 1.0915 by the press time. It should be observed that the Euro pair dropped the most in a week while snapping a two-day uptrend the previous day even as most ECB policymakers appeared hawkish. The reason could be linked to the upbeat comments from Fed Chair Jerome Powell.

Also read: EUR/USD Forecast: No clear direction despite retreat