A Governing Council member says the ECB will act to ensure inflation returns to 2%, with a September decision pending.
European Central Bank Governing Council member Mārtiņš Kazāks stated the ECB is prepared to take further action to curb inflation and reach its 2% target. The remarks came during Friday’s European trading session, emphasizing data dependency for the next move.
Kazāks noted that a September decision will weigh pros and cons of additional hikes, while wage growth shows signs of gradual slowing. Inflation expectations remain anchored near the target, but uncertainty makes forward guidance counterproductive.
The ECB’s primary tool for managing inflation is interest rate adjustments, with higher rates typically strengthening the Euro. The Governing Council meets eight times a year to set policy, with decisions influenced by economic data.