Keeping prices in check will be an uphill battle if there is hesitation in tackling record euro-zone inflation, Bloomberg reported, citing comments from European Central Bank (ECB) Governing Council member Madis Muller noted in a blog post on Friday.

Key quotes

“Inflation is spreading from energy to other goods and services, with Russia’s war in Ukraine driving up food and raw-materials costs.”

“Loose ECB monetary policy is largely not to blame for elevated inflation, and that the full impact of its decisions this week will only be seen in a few years.”

These comments come a day after the ECB pledged to raise interest rates for the first time since 2011 at its July policy meeting.

Market reaction

EUR/USD is uninspired by the latest ECB-speak, turning back in the red near 1.0600.