ECB Policymaker Warns of More Rate Hikes Amid Inflation Concerns

European Central Bank policymaker Martins Kazaks is signaling that more interest rate hikes may be necessary to combat rising inflation. The ECB raised its key rate to 2.5% from 2.25%, and Kazaks believes this move should not be seen as a ceiling.

Kazaks, the governor of Latvia's central bank, stated that 'the case is building up for more tightening' due to elevated energy prices and broader inflation trends.

The euro zone inflation rate stood at 3.3% in August, and the ECB expects it to rise further in the coming months. Kazaks emphasized that the ECB can afford to move stepwise and without rushing future hikes.