Bloomberg reports that ECB chief economist Philip Lane said that the recent appreciation of the euro dampens the inflation outlook and the European Central Bank is ready to act if needed.

Inflation will remain negative for the rest of the year and upward revisions in core price growth because of the economic rebound have been “significantly muted” by the stronger exchange rate, he wrote in a blog post on Friday.

“It should be abundantly clear that there is no room for complacency,” he wrote. “The Governing Council stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves toward its aim in a sustained manner, in line with its commitment to symmetry.”