"It will be critical for central banks to keep inflation expectations firmly anchored while these relative price changes play out," Christine Lagarde, President of the European Central Bank (ECB), said on Monday.

"It is exactly when people are paying most attention that central banks should deliver their key communication to ensure that those expectations remain firmly anchored," she added while speaking at the Distinguished Speakers Seminar organised by the European Economics & Financial Centre.

Market reaction

These comments failed to trigger a noticeable market reaction and EUR/USD was last seen trading in positive territory near 1.0800.