ECB Governing Council member Kazaks said the ECB stands ready to take further action if needed to return inflation from its currently "slightly unsettling" level to target. He noted consumer price growth remains "around 3%" and said it is too early to judge the outcome of next month’s meeting. After June’s first rate hike, markets have almost fully priced a 25bp increase in the deposit rate. Kazaks said: "If necessary, we are prepared to act to push inflation back to 2% within a reasonable time.

ECB Governing Council member Kazaks said the ECB stands ready to take further action if needed to return inflation from its currently "slightly unsettling" level to target. He noted consumer price growth remains "around 3%" and said it is too early to judge the outcome of next month’s meeting. After June’s first rate hike, markets have almost fully priced a 25bp increase in the deposit rate. Kazaks said: "If necessary, we are prepared to act to push inflation back to 2% within a reasonable time. We will meet again in September to assess the data and economic outlook and then decide. Given current conditions, further rate hikes have pros and cons."