Central Banks
ECB Rates Must Hit Significantly Restrictive Levels, Kazaks Says
- No reason to pause or stop after March, Latvian official says
- Remarks add to hawkish messaging from many ECB policymakers
Martins Kazaks
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The European Central Bank must lift interest rates to levels that “significantly” restrict the economy, according to Governing Council member Martins Kazaks, who argued that hikes may need to persist beyond the next meeting in March.
Describing inflation risks as “still tilted on the upside,” the hawkish head of Latvia’s central bank said the eventual peak in borrowing costs will have to be maintained for a while to ensure that the euro zone’s worst-ever spike in prices is tamed.