In an interview with German internet portal T-Online, European Central Bank (ECB) policymaker Joachim Nagel warned markets against betting on imminent rate cuts, per Reuters.

"We must initially remain at the current interest rate plateau so that monetary policy can fully develop its inflation-dampening effect," Nagel said and added: 

"I would say to everyone who is speculating on an imminent interest rate cut: be careful, some people have already miscalculated that."

Market reaction

EUR/USD showed no immediate reaction to these comments and was last seen trading in its tight daily channel at around 1.0950.