ECB May Hike Rates in October Amid Rising Euro-Area Inflation
The European Central Bank (ECB) may raise interest rates in October, according to Irish central-bank chief Gabriel Makhlouf. Speaking to Bloomberg Television on Thursday, Makhlouf stated that officials will assess borrowing costs one meeting at a time and can't rule out any future moves.
Makhlouf emphasized the ECB's commitment to its 2% inflation target and noted that current numbers aren't strong enough to meet this goal. He also warned that euro-area inflation is poised to accelerate beyond 3.2%, pushing it further from the desired rate, due to rising oil and natural gas costs.
The ECB has already increased the deposit rate to 2.5% with its latest decision, and Makhlouf said that this level remains within a neutral band. However, some policymakers believe another step could be possible as soon as October.