European Central Bank Confronts Inflation with Expectations of Further Rate Hikes

Pierre Wunsch, a member of the European Central Bank’s Governing Council, has stated that the bank may need to continue raising interest rates to combat inflation. He noted that the current deposit rate of 2.5% is not yet sufficiently restrictive, given that domestic inflation stands at 3%.

These remarks follow a 25-basis-point interest rate hike last September, amid projections that inflation in the Eurozone will average 3% through 2026.ش