Slovak Central Bank Chief Urges ECB Rate Hikes
Peter Kazimir calls on the European Central Bank to raise interest rates again to prevent high inflation from becoming entrenched.
The chief of the Slovak central bank and member of the European Central Bank Governing Council, Peter Kazimir, stated on November 2 that the ECB must raise interest rates again to prevent high inflation from becoming entrenched. Kazimir argued that markets may be underestimating the action required to return inflation to the 2% target, warning that waiting for absolute certainty is not good policy.
While the ECB kept rates unchanged last week, Kazimir characterized the pause as not being a "finish line." He noted that current government spending is buffering the economy, a factor that could sustain price pressures. He urged the bank to act before high inflation is perceived as normal by the public and markets.
