European Central Bank (ECB) President Christine Lagarde said in her appearance on Friday that “hikes should send a signal that we'll meet price goal.”

Additional comments

“We are facing a supply shock but also strong elements on the demand side.”

“We have to react according to the complicated situation on the supply and demand sides.”

“Our actions may way on growth, but it is a risk we have to take because price stability is priority.”

Earlier on, the central bank policymaker Olli Rehn said, “I assume further rate hikes going forward.”

Meanwhile, ECB Vice President Luis de Guindos said that “we do not have any estimates of the terminal rate.”

Market reaction

EUR/USD is off the lows, still down 0.30% on the day at 0.9970 on the above comments.