Kazaks Warns ECB May Hike Rates Further Amid Ongoing Energy Shock

The European Central Bank (ECB) may have to increase borrowing costs to curb economic activity as it seeks to control inflation, according to ECB Governing Council member Martins Kazaks. Speaking on Bloomberg Television, Kazaks stated that the energy shock caused by the Iran war is proving more sustained than expected.

Kazaks emphasized the need for the ECB to act quickly to prevent elevated oil and natural gas prices from spreading to other areas of inflation. The Latvian central bank head believes that the ECB must do everything in its power to avoid this scenario, which could lead to higher borrowing costs.