Kazimir Sees One More Rate Hike Needed for ECB

European Central Bank (ECB) Governing Council member Peter Kazimir believes that one more interest rate hike is necessary to tame inflation, which he sees as too high. Kazimir's hawkish stance contrasts with more dovish views within the council, such as Bank of France Governor François Villeroy de Galhau.

Kazimir made his comments during a public appearance, ahead of the ECB's next monetary policy meeting scheduled for mid-June 2026. The bank has raised rates at each of its past seven meetings, increasing the deposit facility rate to 3.75% as of April 2026.

Market analysts have priced in a roughly 60% probability of a quarter-point increase in June. However, some policymakers have signaled a potential pause to assess the lagged effects of past tightening.