European Central Bank (ECB) policymaker Olli Rehn said Wednesday, “it is necessary for rates to move relatively quickly out of the negative territory.”

Additional comments

“Need to continue a gradual process of monetary policy normalization.”

“This is also the indication given by many colleagues within the ECB.”

“Uncertainty related to future price developments has increased.”

“Uncertainty surrounding the ECB's macroeconomic projections is also currently very elevated.”

“ECB’s June GDP growth forecast likely to be closer to the adverse and severe scenario of 2% than the baseline of 3.7%.“

“We must be mindful not to let inflation expectations become unanchored, which would be very damaging to price stability.“

“Acceleration of wage inflation is now the single most critical factor in determining the course of monetary policy.“

“First ECB interest rate hike in over a decade is likely to take place in the summer.”

Market reaction

Despite the hawkish ECB-speak, EUR/USD is testing lows near 1.0505, down 0.40% so far. King dollar regains control across the board amid risk-aversion.