ECB Official Signals Potential Rate Hike in September

European Central Bank official Primoz Dolenc has indicated that another interest rate hike may be necessary when policymakers meet in September. The Slovenian central-bank governor pointed to stronger-than-anticipated economic expansion and ongoing energy price pressures as reasons for further tightening.

Dolenc stated at the Federal Reserve's Jackson Hole symposium, 'The arguments support a September increase to protect our inflation target.' He highlighted that recent data shows inflationary pressures aren't easing on their own.

The ECB raised rates in June, and financial markets widely expect another quarter-point hike when officials reconvene. Other policymakers including Executive Board member Isabel Schnabel and Latvia's Martins Kazaks have recently signaled support for additional measures.