ECB’s Schnabel: Monetary policy cycle is coming to an end

European Central Bank (ECB) board member Isabel Schnabel said on Thursday, “monetary policy cycle is coming to an end.”

Additional comments

Growth outlook broadly stable despite trade conflict.

Medium-term inflation stabilizes at target.

Financing conditions are no longer restrictive.

Private consumption is supporting growth.

Defence and infrastructure spending counteract tariffs.

Energy prices and the Euro could change in either direction.

I expect only limited trade diversion from China to EU.

The Euro’s global role is strong, could strengthen further.

Market reaction

EURUSD is stretching higher despite the dovish ECB commentary, adding 0.60% on the day at 1.1557, as of writing.