ECB Governing Council member Gediminas Simkus said yesterday, “core inflation remains strong and demonstrates that the fight against inflation is not over.”
“There’s a strong case for staying on the course that’s been set for the coming meetings of 50 basis-point increases. In my opinion, these 50 basis-point increases must be taken unequivocally,” he added.
“Pressures in wage growth are increasing — I expect wage increases to exceed historical averages in the euro area,” he said. “It’s something that’s happening and something we need to take into account because it affects core inflation.”
“It’s clear to me that the current economic environment requires us to deliver increases of 50 basis points in the coming meetings,” he said. “When we move to the more distant periods of the summer or next autumn, we need to wait and see.”