European Central Bank (ECB) Governing Council member Peter Kazimir said on Monday that "strong action" will be needed in the first half of 2023 as the upward inflation risks have not subsided. He warned that rates will need to enter restrictive territory and "stay there much longer" than previously estimated.
Kazimir noted that risks for the euro area economy are "clearly downward," while fiscal policy is "starting to add to inflation risks." His comments echo those of ECB Vice President Luis de Guindos, who said the bank will have to keep raising rates by 50 basis points "for a period of time."
