European Central Bank Governing Council member Martins Kazaks has signaled that further interest rate hikes could be on the horizon if inflation remains stubbornly high. In an interview published Wednesday, Kazaks emphasized that consumer-price gains are still significantly above the ECB's target level. "The story of inflation being way above target is still there," he stated, adding that additional policy tightening might be necessary if this trend persists.
However, Kazaks cautioned that central bankers must proceed with care due to opposing economic forces at play. His remarks come amid ongoing concerns about the balance between controlling inflation and avoiding excessive tightening that could stifle growth. The Latvian official's comments reflect the broader debate within the ECB about the appropriate monetary policy stance in the current economic climate.