Despite the “even greater risk than before the war” in Ukraine that eurozone inflation will stay above 2% per annum for an extended period of time, the interest rate hike will not come immediately as “there is time” to carry out the tightening of monetary policy, according to the head of the European Central Bank (ECB) and president of the National Bank of Slovakia, Peter Kazimir.
In a text published on the Slovak Central Bank’s website this Friday (11), the leader guarantees that the pace and period for monetary tightening will be determined according to the conditions of the bloc’s economy, in addition to indicators monitored by the ECB.
“We will do everything necessary to guarantee the stability of the economy and financial markets”, he reinforced.
For Kazimir, the inflation caused by the conflict in Eastern Europe should spread to other sectors and products if there is not a ceasefire soon.
“This poses a risk to the economy, including strong pressures on higher wages,” warned the central banker, who also highlighted the inevitable impact of sanctions on Russia on the European economy as a whole.
Source: CNN Brasil
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