European Central Bank (ECB) Vice President Luis de Guindos said on Tuesday that they will continue to raise rates over the coming months and added that the number and size of the hikes will be determined by the data, as reported by Reuters.

"For 2023, growth will be very low, below 1% in the base case," de Guindos added. "Higher interest rates will have a clear impact on corporate solvency."

Market reaction

The EUR/USD pair continues to trade in positive territory above 0.9600 after these comments.