European Central Bank (ECB) Chief Economist Phillip Lane said on Tuesday that they will be agile on interest rates, per Reuters.

Key quotes

"We still have many degrees of flexibility to react to upside or downside shocks."

"We have a good degree of confidence at arriving at 2% inflation target, reserving flexibility on exact timeline."

"We have a dynamic now of transitioning back towards 2% target, have to be careful that converges rather than get stuck at some higher number."

"We look at exchange rate, it is one factor among many and fluctuations we are seeing are invisible in terms of inflation."

"One way to deal with uncertainty is a little bit of waiting, wait and make sure you're not taking a step you're going to regret."

Market reaction

EUR/USD stays under bearish pressure and was last seen losing 0.3% on the day at 1.0730.