European Central Bank Governing Council member Alexander Demarco stated that if the region faces another energy shock or if underlying inflation picks up significantly, the ECB could raise interest rates as early as October.
Speaking on Tuesday, Demarco said no option should be ruled out. The absence of new economic projections does not mean action cannot be taken, he added.
He also noted that a very unfavorable upside surprise in underlying inflation would constitute a strong reason to act in October. A renewed energy price shock could likewise serve as a justification for taking action in October.
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