ECB governing councilor Kazaks said the central bank cannot allow consumer prices to keep rising or let inflation become entrenched, noting rate hikes are a tool to curb its spread and that the ECB has already tightened once. Markets expect a September rate hike; the ECB raised in June and held in July, and will publish fresh economic projections at the September meeting to guide the decision. Kazaks said the ongoing Middle East war is prompting the ECB to reconsider further tightening and that,

ECB governing councilor Kazaks said the central bank cannot allow consumer prices to keep rising or let inflation become entrenched, noting rate hikes are a tool to curb its spread and that the ECB has already tightened once. Markets expect a September rate hike; the ECB raised in June and held in July, and will publish fresh economic projections at the September meeting to guide the decision. Kazaks said the ongoing Middle East war is prompting the ECB to reconsider further tightening and that, while outcomes next month are uncertain, he judges the probability of a hike to be fairly high.