ECB's Makhlouf: QE will probably end before we raise interest rates

European Central Bank governing council member Gabriel Makhlouf said on Friday that the ECB will probably end the quantitative easing program before raising interest rates but refrained from commenting on timing, as reported by Reuters.

Additional takeaways

"Current inflation trend is transitory, would not disagree that a number of pressures are longer lasting."

"If this is more than transitory, we will respond."

"Some of us do believe the ECB inflation forecasts are too pessimistic."

"Some of us do believe that at the moment the forecast of reaching inflation of 1.5% in 2023 is too low."

"There is a discussion and a debate to be had."

Market reaction

The EUR/USD pair largely ignored these comments and was last seen rising 0.13% on the day at 1.1780.