Dolenc Sees Case for ECB Rate Hike in September Amid Strong Growth

At the Federal Reserve's annual economic symposium in Jackson Hole, European Central Bank Governing Council member Primoz Dolenc spoke about the possibility of raising interest rates next month. Dolenc believes there is a good case for increasing interest rates in September, citing that economic growth has exceeded expectations and energy costs remain high. He also mentioned that the latest developments around the Iran war do not show significant improvement.

The Slovenian central-bank governor stated that December data will provide more clarity about the inflation path ahead. This suggests that a decision on interest rates may be put off until later in the year, rather than being made next month. However, Dolenc's comments indicate that the ECB is considering raising rates, which could have significant implications for the eurozone economy.

No specific target or timeframe was mentioned by Dolenc, but his remarks suggest that the ECB is taking a cautious approach to monetary policy. The bank has been grappling with rising inflation and slowing economic growth in recent months, and a rate hike would be a major shift in its stance.