European Central Bank Governing Council member and Bundesbank President Joachim Nagel said on Wednesday that the ECB's monetary policy must be on guard over high inflation, as reported by Reuters.
Additional takeaways
"If price stability requires it, ECB must adjust its monetary policy course."
"German inflation could average 5% this year, well above previous forecasts."
"Eurozone inflation also likely to be record high."
"Impossible to estimate the economic impact of war in Ukraine."
"Will not transfer any profits to the federal budget, will boost provisions by 1.3 billion euros."
"Likely to increase provisions further in 2022."
Market reaction
EUR/USD stays on the back foot after these comments and was last seen losing 0.4% on the day at 1.1083.