European Central Bank Governing Council member Mario Centeno said on Tuesday that the normalisation of monetary policy is desired and must happen, reported Reuters.

His remarks come after ECB Governing Council member Klaas Knot told the Dutch TV earlier in the day that a 50 bps rate hike should not be excluded if data in the next few months suggest that inflation is broadening and accumulating. "The ECB needs to normalize policy," Knot added, per Reuters, and reiterated that a 25 basis points rate hike in July would be realistic.