ECB Shouldn’t Slow Hikes as Wage Pressures Grow, Simkus Says
- Underlying measure shows fight against inflation isn’t over
- Lithuanian central bank governor comments in interview
The European Central Bank headquarters in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank should continue lifting interest rates in half-point steps as workers secure bigger paychecks and underlying inflation pressures remain strong, according to Governing Council member Gediminas Simkus.
There are no grounds to depart from the rate path laid out by the ECB in December — even as energy prices plunge and headline inflation comes off record highs, the Lithuanian central bank chief said in an interview in Vilnius. Monetary tightening may not finish before the summer, he said.