European Central Bank (ECB) policymaker Martins Kazaks said in a Bloomberg interview late Tuesday, ““currently I would see that at the February and March meetings, we will have significant rate increases.”

“Of course, the steps may become smaller as necessary as we find the level appropriate to bring the inflation down to 2%,” Kazaks added.

Market reaction

EUR/USD is attempting a tepid bounce just above 1.0550, finding some respite from these comments after Tuesday’s massive slump. The pair is adding 0.12% on the day to trade at 1.0557, as of writing.