ECB Governing Council member Peter Kazimir stressed today the necessity for continued monetary policy tightening to address prevailing inflationary pressures. he specifically highlighted the need for another rate hike in July to move further into a restrictive policy stance.
“We need to deliver another rate hike in July and move further into restrictive territory,” Kazimir stated. He underscored that a continuation of monetary policy tightening is “the only reasonable way ahead.”
Looking ahead to September, Kazimir cautioned that an updated analysis would be required to assess the impact of ECB’s rate hike cycle before proceeding with further tightening measures. However, he emphasized that halting rate hikes prematurely presents a “much more significant” risk than overtightening.
Kazimir drew attention to several factors contributing to inflation risks, asserting, “Upward inflation risks are still substantial, linked to the labour market situation, food prices and, last but not least, profit margins.”
