European Central Bank (ECB) Governing Council member Isabel Schnabel noted on Thursday that inflation expectations in the Eurozone are still broadly anchored but added that risks of high inflation persistence had increased further, as reported by Reuters.

Additional takeaways

"Only a deep recession with a sharp rise in unemployment would dampen inflation but this is unlikely now."

"There is no time for monetary policy to pause."

"We need to raise rates into restrictive territory."

Market reaction

EURUSD pair showed no immediate reaction to these comments and was last seen losing 0.5% on the day at 0.9960.