ECB’s Kazimir: Stresses on frontloading interest rate hikes despite US-Iran peace deal
European Central Bank (ECB) Governing Council member and Governor of the National Bank of Slovakia (NBS) Peter Kazimir seems to be joining his peers in highlighting the need for further monetary policy adjustments on the upside despite the United States (US) and Iran reaching a peace framework.
Remarks
It is increasingly evident that monetary policy has more work to do.
Energy shock is seeping into the economy, requires ECB's vigilance and preparedness to respond.
I am not comfortable with outlook for core inflation above 2% even with more tightening.
I lean towards frontloading work that needs to be done, but need to be agile and responsive to incoming information.
Even with US-Iran peace framework, damage in Middle East cannot be undone overnight.
Market reaction
No immediate response seen in the Euro (EUR) after ECB Kazimir's comments. During press time, EUR/USD trades 0.37% higher to near 1.1610 amid an upbeat market mood.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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