"What started as a one-off shock has now become a more broad-based phenomenon," European Central Bank (ECB) Governing Council member Bostjan Vasle said on Wednesday, per Reuters. "When the circumstances change, the policy response must follow," the Slovenian central bank Governor added.

Vasle further noted that he is in favour of the ECB taking further and faster action to tame inflation.

Market reaction

The shared currency holds its ground against its major rivals after these comments. As of writing, the EUR/USD pair was up 0.3% on a daily basis at 1.0558.