ECB’s Kazimir: Interest rate hike is first of a series of similar steps needed to tame inflation risks

Dhwani Mehta FXStreet

European Central Bank (ECB) policymaker and Slovak central bank Governor Peter Kazimir said on Friday, “interest rate hike is first of a series of similar steps needed to tame inflation risks.”

Additional quotes

Economic development in eurozone and elsewhere will determine by how much we raise rates in September and beyond.

It is possible to expect 25 or 50 bps hike in September.

It will take a while to get inflation to desired levels.

I would wish we never have to use transmission protection instrument but we will see.

A lot will depend how governments tackle origins of imbalances and fragmentation.

Market reaction

EUR/USD is on a minor recovery mode while Kazimir speaks on the ECB’s policy decision. At the press time, the pair is trading at 1.0163, still down 0.62% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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