Member of the Board of Governors of the European Central Bank Mārtiņš Kazaks indicated that “there is still a need to raise interest rates”, stating that “we will certainly raise interest rates in the coming weeks”.
“These are the latest statements about the need to raise borrowing costs to counter an inflationary crisis in the European single currency area, which has quintupled the bank’s 2 percent target,” Bloomberg reported.
In the Baltic region, prices increased by more than 20 percent.
The comments come in light of the rapidly deteriorating economic conditions in Europe as German bank Deutsche Bank predicted a deeper recession than previously expected this week after Russia cut off energy supplies to Europe.
Kazaks said that the depreciation of the euro in light of the rapid rise in US interest rates exacerbates inflationary pressures by raising the cost of imports.
Source: El Iktisad
