Central Banks
ECB’s Kazaks Says Next Hike Must Be Big, Smaller Steps to Follow
- ‘I would side with 75 basis points,’ Latvian official says
- Future rate increases could become somewhat more cautious
Photographer: Evija Trifanova/LETA/Latvia Central Bank
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The European Central Bank should raise interest rates by another 75 basis points when it next sets policy in October, with steps likely to get smaller after that, according to Governing Council member Martins Kazaks.
“In the current situation, we can still make big steps, and the next step still has to be big because we are still far away from rates that are consistent with 2% inflation,” Kazaks said Wednesday in an interview in Vilnius. “I would side with 75 basis points -- let’s take a bigger step and move the rates up faster.”