ECB to Hike If Oil Deanchors Inflation Expectations, Kazaks Says

The European Central Bank will need to raise borrowing costs if an increase in crude prices feeds through to inflation expectations, according to Governing Council member Martins Kazaks.

“Oil prices are higher, we see that it’s gradually starting to push inflation up, and if inflation expectations start to deteriorate, then the ECB will be forced to raise interest rates,” the Latvian central bank chief told public broadcaster LTV on Thursday.