German Finance Minister Christian Lindner said on Thursday that they will mobilise Germany's economic strength when necessary, as reported by Reuters.

Regarding the German government's decision to implement a price brake on gas and electricity while providing funding of up to €200 billion for an "economic defence shield," Linder said that these measures should not fuel inflation.

"We are not following the British down the path of expansionary fiscal policy," the minister explained.

Market reaction

The EUR/USD pair retreated from session highs following these comments and was last seen trading at 0.9705, where it was down 0.33% on a daily basis.