() - The European Central Bank may need to hike interest rates as inflationary pressures increase, the bank’s Executive Board member Lorenzo Bini Smaghi said.
According to an interview published in daily newsletter Bloomberg Brief: Economics, Bini Smaghi said, “As the economy gradually recovers and global inflationary pressures arise, the degree of accommodation of monetary policy has to be monitored and, if needed, corrected.”
The central banker noted that commodity price increases will have an “unavoidable” impact on monetary policy and challenges the central bank to avoid spillovers and maintain inflation expectations in check.
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