Central Banks
ECB’s Kazimir Says 10% Inflation Is No Reason to Slow Rate Hikes
- Too early to tell if price gains peaked, Slovak official says
- Rates should quickly become restrictive, he tells Bloomberg
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European Central Bank Governing Council member Peter Kazimir signaled support for a third straight 75 basis-point interest-rate increase next week — even after inflation in the currency bloc cooled for the first time in 1 1/2 years.
While November’s slowdown to 10% was welcome, it’s too early to declare that the worst of the unprecedented spike in prices is over, Kazimir said in an interview. With any euro-area recession likely to be short-lived and inflation to stay above-target even in 2025, officials should quickly raise rates to a level that brakes economic activity, he said.