ECB’s Kazaks sees rate hikes past July even as economy softens

The ECB raised interest rates to their highest level in 22 years earlier this month and said a ninth consecutive rate hike was all but guaranteed in July as it predicted inflation to stay above its 2 percent target through the end of 2025.

“In my view we will still need to raise rates and I don’t think that in July we’ll be comfortable enough to say: ‘we’re done’,” he said. “I think rates will need to be raised past July but when and by how much will be data dependent.”The ECB increased the rate it pays on bank deposits to 3.5 percent in June and is expected to push it to 4 percent by the end of the year before turning back, money market prices show.

He added the first rate cut would come “much later” than the market is expecting, or towards the middle of its three-year forecast period.

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