(Reuters) – The European Central Bank needs to accelerate the pace of monetary tightening to 0.50 percentage point in September, after an initial 0.25 point increase in July, Slovak government council member Peter Peter Kazimir.
“Summer (in the Northern Hemisphere) is not the end of anything, just the beginning,” Kazimir said in emailed comments. “In the fall, specifically in September, we will continue to raise interest rates and here I clearly see the need to accelerate the pace and deliver a 0.50 point increase,” he said.
The ECB indicated a 0.25-point rate hike in July and said a larger hike may be needed in September as inflationary pressures were building and widening, raising the risk that price growth could become entrenched.
“From my point of view, it is more reasonable to act preemptively than to scratch your head afterwards,” said Kazimir, governor of the Slovakian central bank.
“The data received just assures me that there is no reason to hesitate. Negative interest rate must be last September.”
The ECB now estimates inflation at 6.8% this year, more than triple its target, and price growth could remain above 2% through 2024, raising the risk that businesses and households will lose confidence in the economy. bank’s commitment to price stability.
Kazimir said inflation will remain high for some time, including in double digits in Slovakia next year.
(Reporting by Jan Lopatka in Prague)
#raise #interest #rates #September #ECB #official #ISTOÉ #DINHEIRO