According to Kazimir, why is a September ECB rate hike still likely even if the economic outlook improves?

Kazimir stated: 'I remain of the view that at least one more hike will be needed as part of our measured adjustment to inflation risks. This is warranted even if the situation improves somewhat.' He emphasized the need for preemptive action because second-round price impacts 'often form quietly' and become 'costly to reverse' once fully visible, so the ECB must act before they materialize—not after.

What conditions would lead Kazimir to reconsider advocating a September rate hike?

Kazimir said that 'very convincing' economic data and geopolitical developments would be needed in the coming weeks for him not to advocate a move in September—indicating his stance is conditional but highly demanding of evidence, not merely modest improvement.

ECB's Kazimir: September Rate Hike Likely Needed Even if Outlook Improves

Jul 27, 2026

Slovak central bank chief Peter Kazimir stated the ECB needs at least one more rate hike to curb inflation, citing surging oil and gas prices amid Middle East conflict. Markets anticipate further tightening in October and March.

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