ECB Ready to Raise Rates Further Amid Inflation Concerns

Governing Council member Gabriel Makhlouf has warned that the European Central Bank (ECB) must be prepared to raise interest rates further if inflation starts moving in the wrong direction.

In an interview with the Financial Times, Makhlouf stated that the central bank's decision next week will not be a surprise. He emphasized that the ECB would 'slightly' raise its growth forecast for the euro zone this year.

Makhlouf's comments suggest that the ECB is prepared to take further action to combat inflation, which has been a persistent concern in the region. The central bank has already raised interest rates several times this year, but Makhlouf believes more may be needed if inflation starts to rise again.

The exact timing and magnitude of any future rate hikes will depend on various economic indicators, including inflation data and growth trends. However, Makhlouf's comments indicate that the ECB is ready to respond quickly if necessary.