European Central Bank (ECB) policymaker Klaas Knot said on Wednesday that they need a few more significant rate hikes before reaching neutral territory and noted that the terminal rate in the eurozone is lower than in the US, per Reuters.

"I have no indication that with steps up to 75 basis points we will not be able to achieve our price stability mandates 2% inflation over the medium term," Knot added and reiterated that there were no convincing signs of a wage-price spiral.

Market reaction

EUR/USD continues to trade within its daily range after these comments and was last seen posting small losses at 0.9695.