In an interview with Dutch broadcaster Radio 1, European Central Bank (ECB) Governing Council member Klaas Knot said that he does not expect a rate hike at the next policy meeting, per Reuters.

"I think interest rates are currently at the right level for us and I don't think we need to change them in the very short term," Knot explained and said that the ECB will stay alert to signals indicating inflation remain too high.

Market reaction

EUR/USD edged lower after these comments and was last seen losing 0.16% on the day at 1.0642.