Kazaks Signals Potential for Higher Interest Rates Amid Inflation Concerns

European Central Bank (ECB) governing council member Martins Kazaks suggests that interest rates may need to rise further to combat inflation.

Kazaks, who is also the governor of the Bank of Latvia, made these comments while attending a meeting of European finance ministers and central bank governors in Dublin.

The ECB has already raised interest rates twice since June, but Kazaks believes that more may be needed to bring inflation down to the target rate of 2%.

Kazaks pointed out that Germany's unexpectedly strong economic growth in the second quarter makes it easier for the ECB to raise interest rates.