ECB Governing Council member Kazax said that if further action is needed to return inflation to the target from the current “slightly disturbing” level, the ECB is fully prepared. He said that although consumer price increases are still “hovering around 3%,” it is still too early to judge the results of next month's ECB meeting. Following the first rate hike in June, the market is now almost entirely betting that the ECB will raise deposit interest rates by 25 basis points. Kazax said, “If necessary, we are ready to take action to push inflation back to 2% within a reasonable time. We will meet again in September to evaluate data and economic prospects before making a decision. Given the current situation, further interest rate hikes have their pros and cons.”

ECB Governing Council member Kazax said that if further action is needed to return inflation to the target from the current “slightly disturbing” level, the ECB is fully prepared. He said that although consumer price increases are still “hovering around 3%,” it is still too early to judge the results of next month's ECB meeting. Following the first rate hike in June, the market is now almost entirely betting that the ECB will raise deposit interest rates by 25 basis points. Kazax said, “If necessary, we are ready to take action to push inflation back to 2% within a reasonable time. We will meet again in September to evaluate data and economic prospects before making a decision. Given the current situation, further interest rate hikes have their pros and cons.”