ECB Policymaker Sees Case Building Up for More Interest Rate Hikes

The European Central Bank (ECB) may need to raise interest rates further to combat inflation before Iran's conflict-driven fuel costs start affecting wages and other prices, according to ECB policymaker Martins Kazaks.

Kazaks, the governor of Latvia's central bank, sees a growing case for more policy tightening as energy prices and broader inflation remain elevated.

Last Thursday, the ECB raised its key rate to 2.5% from 2.25%, warning that price pressures from the Iran conflict could be long-lasting and fueling bets on more policy tightening as soon as October.