European Central Bank (ECB) Governing Council member and German central bank head Joachim Nagel said on Monday that decisive rate hikes are needed amid rising risks of inflation expectations getting de-anchored.

"The risk that long-term expectations get de-anchored remains high," Nagel explained. "Further decisive action is required to bring the inflation rate down to 2% in the medium term."

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and it was last seen losing 0.7% on the day at 0.9625.