Central Banks
ECB Rate Increases May Not Be Finished in July, Kazaks Warns
- Latvian official still sees ‘quite some ground to cover’
- He calls bets on cuts in spring 2024 ‘significantly premature’
The headquarters of the European Central Bank in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Investors shouldn’t count on the European Central Bank’s unprecedented bout of interest-rate increases ending in July, as the majority of economists currently predicts, according to Governing Council member Martins Kazaks.
“I don’t think it is that clear yet,” the hawkish Latvian official told Bloomberg on Monday by phone. “We still have quite some ground to cover and further rate increases will be necessary to tame inflation.”