Gediminas Simkus, a member of the European Central Bank’s Governing Council, signaled that additional interest rate hikes may be on the horizon. According to Simkus, recent data indicates persistent inflationary pressures, suggesting the need for further monetary tightening.
The Lithuanian central-bank chief highlighted that September’s inflation figures exceeded expectations. Energy costs have also proven higher than anticipated, compounding the inflation challenge. Additionally, the labor market remains robust, which could contribute to sustained price increases.
Simkus’s remarks come amid ongoing concerns about the ECB’s ability to control inflation. The central bank has already implemented several rate increases, but rising energy prices and strong labor conditions may necessitate further action to stabilize the economy.