ECB May Need Further Rate Hikes to Stop Inflation
ECB policymaker Fabio Panetta stated that further interest rate increases may be necessary to combat rising inflation and prevent a wage-price spiral. He noted that monetary policy must prevent price increases from becoming entrenched while accounting for higher bond yields.
The European Central Bank may need to raise interest rates further to counter high inflation and prevent wage spirals, policymaker Fabio Panetta said on Friday. The central bank left rates unchanged previously but hinted at a potential third hike this year. Inflation risks remain skewed to the upside as fuel prices surge amid ongoing geopolitical conflict.
