European Central Bank (ECB) Chief Economist Philip Lane said on Tuesday, “we need to keep raising interest rates.”

Further comments

“Interest rates should be raised step by step.”

“I expect some reduction of demand in the second half.”

“Every economic analysis points towards an economic slowdown in the eurozone, does not, however, rule out a milder technical and temporary recession.”

On Monday, Lane said that "a steady pace - that is neither too slow nor too fast - in closing the gap to the terminal rate is important for several reasons” while commenting on the policy outlook.

Market reaction

The shared currency remains uninspired by Lane’s remarks, consolidating gains around 1.0025 against the US dollar. The spot is higher by 0.31% on the day, as of writing.