(Reuters) – Inflation in the euro zone has been too high for too long and the European Central Bank (ECB) should continue to raise interest rates, but possibly at a slower pace, member Peter Kazimir said on Wednesday. of the Board of Governors of the Frankfurt institution.
“We have a base case scenario that we laid out last week, and under that scenario, I think the inflation we’re working with is too high and has been going on for too long,” he said during a briefing. press conference broadcast by the Slovak central bank.
“I personally think that unless we deviate significantly from the base case, we shouldn’t let up, which means we should keep raising interest rates, maybe at a faster pace. slow, but we should continue”, said Peter Kazimir, perceived as a “hawk” in terms of monetary policy.
The ECB raised interest rates by another 50 basis points two weeks ago, despite concerns about the stability of the global banking system that have rocked financial markets.
According to Peter Kazimir, also Governor of the Central Bank of Slovakia, the ECB has also seen a decrease in market appetite to provide regulatory capital to banks following the sector turmoil, which limits their ability to lend to the economy. euro area economy.
(Report Jan Lopatka, Jason Hovet and Robert Muller in Prague, Diana Mandiá, edited by Kate Entringer)
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