ECB's Radev says the ECB must be ready to act if inflation persists, sees a rising likelihood of adverse scenario but too early to say if April rate hike is needed

The ECB's Radev highlights a growing concern around inflation persistence, indicating that the central bank is on alert for potential adverse scenarios. This suggests that while they're not committing to a rate hike yet, the acknowledgment of rising inflation expectations could signal a shift in the ECB’s stance if conditions deteriorate. Traders should watch for how this plays into interest rate expectations and the EUR's reaction in the market.