Radev: Another ECB Rate Hike Possible as Inflation Persists

Bulgarian National Bank Governor Dimitar Radev has expressed concerns that the European Central Bank (ECB) may need to raise interest rates again, citing inflation above target and a prolonged energy shock. Speaking to Econostream, Radev emphasized the importance of vigilance over patience in monetary policy decisions.

Radev pointed out that current conditions could justify another measured rate hike, particularly if energy price pressures persist or broader inflation remains contained. He noted that the ECB's September decision is still open, but indicated that new information supports considering another increase.

The ECB faces a delicate balance between allowing previous rate increases to take effect and remaining prepared to respond to persistent inflationary pressures, Radev said. While patience is essential, he argued that vigilance should receive greater emphasis in monetary policy decisions.