European Central Bank Governing Council member Peter Kazimir reiterated that he hopes interest-rate increases have finished following September’s 10th straight move.
(Bloomberg) — European Central Bank Governing Council member Peter Kazimir reiterated that he hopes interest-rate increases have finished following September’s 10th straight move.
“I strongly believe that our rate hike at the last meeting was the last one,” the Slovak official told reporters Thursday in Bratislava. “We’ll need to wait for the December and March forecasts. Only real data can persuade us that we’re at the peak. Only then can we start to focus on other monetary-policy tools.”
Kazimir also said:
- On the timetable for PEPP reinvestments, “we’re ready for debate, but we shouldn’t touch the buttons of reducing the balance sheet at a different pace. We’ll come to this topic only after we’re sure we won’t have to raise rates further”
- “We see the overall inflation and also core inflation on a downward trend, though this is lasting a bit longer that we’d wanted”
- “The past rate hikes have an increasingly significant impact on the real economy”
- “Financing conditions are tightening and are weakening demand for investments, in production and affecting overall economic growth. From this point of view, it’s important to succeed in the fight against inflation as soon as possible”
- Read more: ECB’s Guindos Still Sees Substantial Transmission to Economy
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