German Chancellor Olaf Scholz said on Wednesday that they cannot carry on with 0% interest rates and noted that they support the European Central Bank (ECB) in its battle against inflation, as reported by Reuters.

Scholz further note that financing Germany's security will present a challenge for the budget. When asked about US chipmaker Intel's decision to develop two plants in Magdeburg, "it's an impressive signal that so many German and international companies are choosing Germany for the expansion of their semiconductor production," Scholz responded.

Market reaction

EUR/USD showed no reaction to these comments and was last seen trading flat on the day at 1.0880.