European Central Bank (ECB) Governing Council member Olli Rehn said on Wednesday that rates in the Eurozone will still have to rise significantly in the next couple of meetings and reach restrictive levels to dampen inflation, as reported by Reuters.

In December, Rehn had said that he was expecting the ECB to hike the policy rate by 50 basis points in February and March.

Market reaction

EUR/USD pair edged higher with the initial reaction to these comments. As of writing, the pair was trading at its highest level since late May at 1.0768, rising 0.3% on a daily basis.