According to Klaas Knot, the head of the Dutch central bank, the European Central Bank (ECB) must once again tighten interest rates sharply in the fight against record inflation.
At the October meeting, another significant interest rate hike is necessary, said the ECB council member on Monday at an event hosted by the Dutch central bank in Amsterdam.
"The latest data makes it clear that this is not the time for us to slow down," Knot said. "But it's too early to say how big the move should be." The next ECB interest rate meeting is on October 27 instead of.
The stock exchanges may underestimate the risk that inflation could be higher than the economic models are currently predicting, said Knot.
"The ECB has repeatedly said that risks to the inflation outlook are on the upside," he said. "But I don't know how much attention is being paid to this warning." above the level of 2.3 percent currently forecast by the ECB.
Most recently, more and more ECB monetary watchdogs had spoken out in favor of another XXL interest rate hike in October due to the ongoing surge in inflation in the currency area.
In September, the euro central bank raised its three key rates in an unusual step by 0.75 percentage points each.
On Friday, Bundesbank President Joachim Nagel called for a significant rise in interest rates, citing inflation that had risen to ten percent in September.
The key interest rate in the euro zone is currently 1.25 percent.