ECB Next Move Shouldn't Be Predetermined by September Decision

Bulgarian National Bank Governor Dimitar Radev stated that the European Central Bank's next move should not be predetermined by its September decision to raise interest rates. Speaking at a video conference, Radev emphasized that neither another increase nor a pause in rate hikes should be considered the default.

The ECB raised its three key interest rates by 25 basis points on September 10, reflecting an assessment of inflation outlook and monetary policy transmission. Radev noted that future decisions will be guided by the same factors: inflation outlook, underlying inflation dynamics, and monetary policy transmission strength.

Radev also highlighted the importance of patience in monetary policy, stating that central banks need to give previous decisions time to affect the economy. However, he emphasized that patience does not mean passivity, and the ECB should remain ready to act if evidence requires it.