European Central Bank Governing Council member Martin Kocher stated in a media interview published Monday that if the energy price situation does not see significant improvement, the ECB must raise interest rates in the near future.
When asked whether the ECB could raise rates at its meeting on June 11, Kocher said, "If the situation does not improve significantly, a rate hike in the near term will be unavoidable."
"Although the economy and labor market remain resilient, the risk of stagflation cannot be ruled out. The duration of the conflict will be a decisive factor."
"The decision to wait and see in April was reasonable. However, relatively moderate inflation increases do not mean we should wait too long to raise rates if the energy price situation does not improve rapidly and significantly."
"If the war drags on and energy prices remain high, the risk of second-round effects will also increase."
"The European Central Bank will remain vigilant and take decisive action promptly when necessary."
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