European Central Bank Governing Council member Martins Kazaks expects interest rates to be raised “significantly” in February and March.
(Bloomberg) — European Central Bank Governing Council member Martins Kazaks expects interest rates to be raised “significantly” in February and March.
“In the next two meetings I think we can still do quite large steps,” he said Tuesday in a phone interview. “Of course the steps may become smaller as necessary as we find the level appropriate to bring the inflation down to 2%.”
Faced with record consumer-price growth, the ECB already increased borrowing costs by 250 basis points and markets bets suggest another two half-point hikes. Still, inflation may have peaked, supporting those who favor more cautious moves.
Kazaks, who heads Latvia’s central bank, is considered a more hawkish official.
“Currently I would see that at the Feburary and March meetings we will have significant rate increases,” he said.
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