European Central Bank (ECB) Governing Council member and Bank of Latvia Governor Martins Kazaks said on the 14th that the ECB needs to continue raising interest rates gradually to bring inflation under control before fuel cost increases tied to the Iran War feed through into wages and other prices. Speaking in a telephone interview with Reuters, he said that with energy prices and broad-based price levels remaining elevated, "the case for additional rate hikes is growing." The ECB raised its key policy rate from 2.25% to 2.5% at its Governing Council meeting on the 10th, marking its second hike this year.
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