European Central Bank (ECB) policymaker Klaas Knot said on Monday that he was comfortable with the current interest rate levels but added that elevated oil price due to the conflict in Israel could present a new shock to inflation, per Reuters. 

"For now, inflation risks are more balanced than they have been for a long time," he said and noted that they will monitor meeting by meeting whether this remains the case.

Market reaction

EUR/USD showed no immediate reaction to these comments and was last seen losing 0.52% on the day at 1.0532.