Martins Casax, a governor at the European Central Bank, asked for interest rates to be raised through the end of the year.
At a time when economists are increasingly expecting the euro region to be in a state of stagnation, Kazaks stated that interest rates should be raised till the end of the year.
The reason for the strict strict position, according to the Latvian official, is that the high inflation is likely to continue.
According to the Bloomberg news agency today, the official is in favour of a raise of 75 basis points this month and 50 or 75 further points at the 2022 last meeting in December, depending on the facts and pricing.
“Given the current direction, I do not see any need to stop after that . . . the pace can slow down, and I would like to say that we start using a broader set of tools to work through the entire return curve,” Kazaks said, in an interview in Washington.
Some officials urge for a re-evaluation of the situation when the neutral interest rate is reached that does not promote or damage the economy due to the increased borrowing costs following a contract pause.
Author: DBA.
Interest rates are requested by a governor of the European Central Bank.
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