European Central Bank (ECB) Governing Council member and German central bank head Joachim Nagel said on Monday that the ECB's very accommodative monetary policy stance should swiftly be abandoned, as reported by Reuters.

Additional takeaways

"Cautioning against using monetary policy tools to limit risk premia of indebted states."

"Virtually impossible to establish whether widened spread is fundamentally justified."

"Monetary policy measures to combat fragmentation can be justified only in exceptional circumstances."

"Anti fragmentation tool must have narrowly-defined conditions, must be strictly temporary."

"A restrictive monetary policy stance may be necessary to achieve objective."

"De-anchoring of inflation expectations has to be prevented no matter what."

"Our current focus must be on the very high inflation rates."

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen posting small daily gains at 1.0435.