Isabel Schnabel, a member of the European Central Bank's Executive Board, stated that there is no doubt that the ECB will have to take additional measures to bring inflation back to target. She made this statement on Tuesday during a lecture at Hessischer Kreis. 

Schnabel mentioned that slower interest rate hikes allow the ECB to assess the impact of the measures they are taking. She clarified that core inflation has not seen a turnaround like the headline. According to her, rate cuts are unlikely for the foreseeable future.

Market reaction 

The EUR/USD currency pair is falling on Tuesday, but it has moved off lows, rising back above 1.0960 as the US dollar loses momentum. However, the euro remains one of the worst-performing currencies in the G10 space.