FRANKFURT (Reuters) – The European Central Bank may need to keep raising interest rates beyond July to bring inflation back to target, records of the latest meeting released on Thursday show.
The ECB in June raised its deposit rate to its highest level in 22 years and hinted that a ninth consecutive hike would take place in July, in the face of the risk that inflation would remain above 2% until the end of the year 2025.
The minutes of this meeting show that the rise in rates could also continue in September.
“It was deemed essential to signal that monetary policy still had some way to go to bring inflation back to its target in due course,” the institution said. “Members felt that the Governing Council could consider raising interest rates beyond July, if necessary.”
Statistics released since the June 15 meeting showed that the eurozone economy was marking time and inflation continued to slow.
(Francesco Canepa, Laetitia Volga, edited by Kate Entringer)
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