Christine Lagarde, President of the European Central Bank (ECB), said on Monday that they will decide whether further policy action is needed once they reach the neutral rate, as reported by Reuters.

"We may have to take further measures if inflation is not at the target when rates reach neutral," Lagarde explained.

Market reaction

These comments don't seem to be having a significant impact on the shared currency's market valuation. As of writing, EUR/USD was trading at 0.9675, where it was down 0.2% on a daily basis.