European Central Bank's (ECB) policymaker Peter Kazimir said on Monday that the drop in inflation observed in the past few months was not enough to declare victory and move to the next policy stage, per Reuters.

"We are increasingly confident that inflation will reach our target in 2025 and that we can accomplish this in a soft-landing scenario; the progress is still subject to risks," Kazimir added and argued that a policy mistake of premature easing would be more significant than the risk of staying tight for too long.

Market reaction

The EUR/USD pair continues to trade modestly higher on the day at around 1.0920 following these comments.