"The recent surge in inflation is transitory, however factors behind it could be more persistent than initially estimated," European Central Bank (ECB) Governing Council member and Spanish central bank chief Pablo Hernandez de Cos said on Wednesday, per Reuters.

Additional takeaways

"This could lead to relatively high rates of inflation in coming months."

"There is currently high uncertainty about the duration of the current inflation surge."

"As pointed out by ECB President Christine Lagarde, ECB's forward guidance does not support the market view of a first interest rate hike in the third quarter of 2022 nor any time soon afterwards."

Market reaction

The EUR/USD pair showed no immediate reaction to these remarks and was last seen posting small daily gains at 1.1585.