“As long as underlying inflation has not clearly peaked, we shouldn’t stop rate hikes,” the European Central Bank (ECB) Governing Council member and French central bank governor Francois Villeroy de Galhau said in an interview with the Irish Times on Monday.

Additional quotes

“We are not far from the neutral rate, beyond which our hiking pace could be more flexible and slower.”

"Inflation could peak in "first semester" of 2023, could take two to three years to return to target.”

Market reaction

EURUSD is consolidating its latest leg up at around 0.9950, at the time of writing, still down 0.15% on the day.