ECB Ready to Act on Inflation

The European Central Bank (ECB) has the flexibility to take further action if needed to bring inflation back in line with its target, according to Governing Council member Martins Kazaks.

Kazaks, who is also the Latvian central-bank chief, noted that consumer-price gains are still at a 'somewhat uncomfortable' level of 3%, despite recent rate hikes.

The markets are largely anticipating a quarter-point increase in the deposit rate next month, following June's initial move.