Peter Kazimir, a member of the European Central Bank’s Governing Council, has stated that the central bank must raise interest rates at least one more time to ensure inflation risks do not spiral out of control.
The intervention adds weight to the growing consensus within the ECB that the current monetary stance may need to be tightened further to anchor price expectations.
Kazimir’s comments mark a significant shift in the internal debate, as he becomes the second prominent council member to explicitly advocate for a rate increase.
This follows recent signals from ECB President Christine Lagarde, who has repeatedly emphasized that the bank is ready to hike rates if necessary, dismissing concerns that such a move could destabilize financial markets.
The alignment between Kazimir and Lagarde suggests a hardening of the hawkish position ahead of the next policy meeting.
The push for tighter policy comes against a backdrop of persistent inflationary pressures, particularly driven by elevated energy costs.