European Central Bank Governing Council member Peter Kazimir has stated that the institution will not hesitate to implement additional interest rate increases if necessary, though determining the appropriate course for the next move will require more time. In an opinion piece, the Slovak central bank governor affirmed the council's resolve, saying: "We will make every decision when it is needed, and we will never waver when evidence shows that action is required."

Last week, the ECB raised its benchmark rate by 25 basis points to 2.5%, marking the second increase since the outbreak of the Iran conflict, as rising oil prices have intensified inflationary pressures. Market traders are currently pricing in expectations of three additional rate hikes by October 2027.

Kazimir assessed that inflation risks are "clearly tilted to the upside." He noted that while stronger-than-expected economic growth has also contributed to this outlook, energy remains the primary risk factor for inflation, with particular attention being paid to natural gas and electricity prices.