Martins Kazaks, a member of the European Central Bank’s Governing Council and Governor of the Bank of Latvia, has said the monetary institution cannot afford to let inflation linger above its 2% target. Eurozone inflation currently stands at approximately 3%, a full percentage point above the ECB’s goal. Kazaks warned the central bank ‘won’t hesitate to act’ if the data warrants it, with markets pricing in a near-certain 25 basis point deposit rate increase in September. Despite the hawkish tone, the euro barely moved against the US dollar, ticking up roughly 0.26%.
Source: Read the original article
