Central Bank Members Express Caution Amidst Inflation Concerns and Rate Hike Possibilities

Robert Holzmann, governor of Austria's central bank, stated that the European Central Bank (ECB) could potentially implement one or two more interest rate increases if there are additional shocks to the economy. While the ECB recently hiked interest rates to a record level, signaling a potential end to the cycle, Holzmann emphasized that if unforeseen shocks occur or if the current information proves incorrect, further rate hikes may be necessary. The ECB's decision to raise rates has been aimed at combating inflation, and the central bank has indicated that the current interest rates will contribute to a timely return of inflation to its target level.