"A swift normalization of interest rates is an essential first phase, and some front-loading should not be excluded," European Central Bank (ECB) policymaker Klaas Knot said on Tuesday, as reported by Reuters.

"We must forcefully tackle the growing problem of persistently high inflation," Knot added and argued that an economic slowdown alone would be unlikely to bring inflation back to the ECB's objective over the medium term.

"I see several upside risks to inflation; expectations could become de-anchored," Knot warned.

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen rising 0.35% on the day at 1.0030.