“The risk of doing too little dwarfs thr risk of overtightening policy,” European Central Bank (ECB) policymaker Robert Holzmann said on Monday.

He added that “policy must continue to show "teeth" until a credible convergence to inflation target.”

Meanwhile, another ECB policymaker Martins Kazaks noted that “there will be a 50 bps rate hike in March barring significant data shock.”

Market reaction

At the time of writing, EUIR/USD is trading listlessly below 1.0800, down 0.06% so far.