ECB member calls for continued monetary tightening

(Boursier.com) — The European Central Bank will continue to raise borrowing costs despite growing recession risks. Like Jerome Powell in the United States, Martins Kazaks, member of the Board of Governors of the European Institution, believes that “interest rates still need to be raised… During the next meetings, we will certainly increase interest rates”.

The leader clarified on Latvian television that the weakness of the euro – affected by rapid increases in US rates – was aggravating inflationary pressures by making imports of raw materials more expensive.

With this call, the Latvian central banker notably joins Isabel Schnabel, who said Thursday that ECB officials should continue monetary tightening after the 75 basis point movement made this month. The ECB faces inflation nearly five times its 2% target in the eurozone, with price increases even exceeding 20% ​​in the Baltic region.