ECB can still curb euro surge via ‘contingency cut’

European flags are seen in front of the European Central Bank (ECB) building, in Frankfurt, Germany, July 21, 2022. REUTERS/Wolfgang Rattay/File Photo

FINANCIAL markets think the European Central Bank (ECB) has found its “happy place” with a policy rate of 2%.

An outsize surge in the euro might change that, which means it probably has another cut in its back pocket just in case.