ECB Interest Rate Statement from National Bank of Slovakia Governor Kazimir
National Bank of Slovakia Governor and ECB official Kazimir stated that the European Central Bank will not hesitate to raise interest rates if the data requires it.
Peter Kazimir, Governor of the National Bank of Slovakia and ECB official, stated that the European Central Bank would not hesitate to raise interest rates again if necessary.
Determination on Interest Rate Hikes
National Bank of Slovakia Governor and ECB official Kazimir made important evaluations in an op-ed published on the website of the National Bank of Slovakia. Kazimir emphasized that they would make every decision when necessary and would not hesitate when the data calls for action.
Assessment of Data and Market Conditions
Officials first need to examine the effects of the surge in energy costs caused by the war. Whether demand and labor market conditions have strengthened enough to create second-round effects is also being closely evaluated.
Inflation Risks and Energy Costs
Kazimir argued that inflation risks are clearly tilted to the upside. Stating that stronger-than-expected growth contributes to this, the official noted that energy remains the primary source of danger on prices.
Future Steps and Flexibility
It was pointed out that high energy costs carry the risk of embedding themselves into long-term expectations, wages, and prices. Kazimir stated that having an open mind regarding the next decision should not be confused with hesitation.