"At a particularly uncertain time, the process of raising interest rates should be gradual," European Central Bank (ECB) Governing Council member and Spanish central bank chief Pablo Hernandez de Cos said on Wednesday, per Reuters.
Additional takeaways
"A gradual withdrawal of extraordinary monetary stimulus is adequate in the current context."
"The end of the bond-buying programme should be finalised early in the third quarter, with the first interest rate hike to follow shortly afterwards."
"Further rate rises could be made in subsequent quarters if medium-term inflation outlook remains around the target."
"The build-up of price pressure in the eurozone in recent months raises the likelihood of second-round effects which have not materialised strongly."
"Signs of shifts to mid-term inflation expectations above target require monitoring."
Market reaction
The EUR/USD pair edged slightly higher following these comments and was last seen trading at 1.0525, losing 0.2% on a daily basis.