ECB’s Kazimir wants further ‘step’ on rates
2023.07.28 05:55
© Reuters. FILE PHOTO: Slovakia’s Finance Minister Peter Kazimir attends the Asian Financial Forum in Hong Kong, China January 15, 2018. REUTERS/Bobby Yip/File Photo
FRANKFURT (Reuters) – The European Central Bank should take “a firm step further” on interest rates but whether or not it will come in September depends on incoming data, ECB policymaker Peter Kazimir said on Friday.
The ECB increased interest rates for a ninth consecutive time on Thursday but raised the possibility of a pause in September as inflation pressures show tentative signs of easing and recession worries mount.
Kazimir, a policy hawk who favours higher rates, said he still saw the risk of inflation coming in higher than expected and the ECB’s “mission” was “still not fulfilled”.
“We should take a firm step further on our way to the top,” the Slovak central bank governor said in a blog post. “Even if we were to take a break in September, it would be premature to consider it automatically …the end of the cycle”.
By contrast ECB President Christine Lagarde said she didn’t think the ECB had more ground to cover “at this point in time”.
Kazimir said the ECB would then stay put “for a large part of next year”.
“We are looking for the right place to stay for a large part of next year,” he said. “And you will recognise that it has to be a place where we all must like it a little.”
In a likely nod to divisions atop the ECB he added this was proving “challenging with such a large expedition as the Governing Council.”
