Kazakhs: ECB raises interest rates above 25 basis points in July

It is worth mentioning, as reported by Bloomberg, that the ECB is expected to raise its interest rates in July for the first time in 11 years.

The view that the European Central Bank could consider raising key interest rates above the 25 basis points agreed if the high inflationary pressures on the economy persist, underlined ECB board member and Latvian central banker Peter Kazaks, speaking at a banking forum.

He stressed that “if we see how inflation worsens and we also see a negative outlook for inflation in the short term, then -in my opinion- the front-loaded increase in interest rates would be a reasonable choice”.

Kazakh pointed out that the ECB’s interest rate hike can be done relatively quickly and added that it is important that the fragmentation “does not stand in the way of the normalisation of monetary policy”.