Raising the European Central Bank's main interest rate now would not bring down record-high eurozone inflation and only hurt the economy, ECB President Christine Lagarde said in an interview published on Friday.

Key quotes

Raising rates would not solve any of current problems.

Highly unlikely that oil price will continue climbing at 2020-2022 pace.

Confident that inflation will fall back in the course of the year.

We are getting closer to goal, that would allow us to gradually withdraw some interventions.

We don’t want to choke off the recovery.

The greenflation debate is exaggerated.

In most euro area countries, including Germany, wage demands are very moderate.

EUR/USD drops

Following the downbeat comments from ECB President Lagarde, EUR/USD prices drop back to 1.1400.

Read: EUR/USD Price Analysis: Stays directed to 1.1500 despite recent pullback