ECB Governing Council member Robert Holzmann signals potential rate hikes if inflation data fails to improve soon.
The European Central Bank could consider raising interest rates in the next few months if inflation does not show sufficient improvement, according to a Governing Council member. The remarks underscore the ECB’s readiness to tighten policy further amid persistent price pressures in the eurozone.
Recent ECB communications have emphasized a data-dependent approach, with inflation remaining above the 2% target. Markets had largely priced in a pause after the last rate hike, but policymakers continue to warn of upside risks to price stability.
The statement adds to growing speculation that the ECB may extend its tightening cycle, though no immediate action is confirmed. Investors will closely watch upcoming inflation prints for further guidance.