ECB May Need Another Rate Hike to Combat Inflation Risks, Says Kazimir

The European Central Bank (ECB) may need to raise interest rates at least one more time to curb inflation risks, according to Slovak central bank chief Peter Kazimir.

Kazimir, considered one of the ECB's more hawkish policymakers, said that even if the current situation improves moderately, another rate increase would still be necessary.

The ECB kept borrowing costs unchanged at its latest meeting but signalled that a rate hike could come as early as September after oil and gas prices surged this month following renewed tensions in the Middle East.

Kazimir warned that policymakers must remain cautious and take preventive action to avoid a renewed inflationary cycle, citing second-round effects from rising energy costs can develop gradually and become harder to reverse once they are firmly established.