The European Central Bank (ECB) policymaker Robert Holzmann said on Saturday that it is too early to tell whether the ECB has initiated a shift towards lower borrowing costs after it cut its benchmark interest rate at its June meeting last week, per Reuters.
Holzmann further stated that additional ECB rate cuts in the absence of cuts from the US Federal Reserve (Fed) would have an impact on the Euro exchange rate and inflation.
Market reaction
At the time of press, the EUR/USD pair was down 0.23% on the day at 1.0777.
