ECB Policymaker Kazimir Suggests Further Interest Rate Hikes Are Needed to Combat Inflation

Slovak central bank chief Peter Kazimir stated that the European Central Bank (ECB) will likely need to raise interest rates again to prevent high inflation from becoming entrenched, suggesting that markets might be underestimating the necessary actions. This follows the ECB's decision last week to keep rates unchanged, despite some policymakers advocating for earlier hikes due to elevated energy costs. Kazimir emphasized that the focus should be on the sustained path to bring inflation back to target, rather than individual meetings or moves.