In an interview with Slovenia’s Delo newspaper early Thursday, European Central Bank (ECB) Governing Council member, Bostjan Vasle, said that the central bank must continue raising interest rates further to bring inflation down to its target.

Key quotes

“Further interest-rate increases will be needed.”

“But they’ll be smaller than they were in the past. We’re approaching the level of rates that’s restrictive enough to bring inflation back toward 2%.”

“Fiscal — including wage policy — and monetary policies will have to be linked to a greater extent than in the past.”

Market reaction

The Euro is a little impressed by the hawkish comments from Vasle, leaving EUR/USD in monthly lows near 1.0735, at the time of writing. The pair is losing 0.17% so far.