ECB Governing Council Member Kazimir: Possible rate hike ahead of schedule to address inflation pressures

Mars Finance reports that ECB Governing Council member Kazimir stated that the Iran war and its impact on inflation could force the European Central Bank to raise interest rates earlier than expected. Although he believes the current position remains “favorable,” he is concerned that the region’s memory of inflation shocks has lowered the threshold for companies to raise prices and consumers to demand higher wages. He pointed out that upside risks dominate the economic outlook and said the ECB is ready to act at any time. The market currently expects a rate hike in September or later.