European Central Bank Governing Council member Pablo Hernandez de Cos said keeping interest rates at current levels could bring inflation back to target — joining other officials in signaling the end of an unprecedented hiking campaign.
(Bloomberg) — European Central Bank Governing Council member Pablo Hernandez de Cos said keeping interest rates at current levels could bring inflation back to target — joining other officials in signaling the end of an unprecedented hiking campaign.
“On the information currently available, maintaining the present level of interest rates for a sufficiently long time should be broadly consistent with achieving our inflation target of 2%,” de Cos said in a blog post published Wednesday on the Bank of Spain’s website.
The comments come a week after the ECB raised rates for a 10th straight meeting to tackle inflation that’s still exceeds 5%. Some policymakers have since expressed hope that the hike was the last of this cycle, while investors are stepping up bets on cuts as the 20-nation euro-zone economy weakens.
De Cos said he sees inflation risks as balanced, with rising oil and food prices countered by weaker consumer demand and record-high borrowing costs, highlighting that sluggish economic expansion is extending into the third quarter.
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