ECB Rate Hike Unavoidable, Market Underestimating Needed Scope, Says Slovak Central Bank Chief

Peter Kazimir, a member of the European Central Bank's Governing Council and governor of the Slovak Central Bank, said the ECB needs to raise interest rates further to prevent high inflation from becoming entrenched. He noted that while markets have priced in two to three rate hikes over the next year, the scale of the response needed may be underestimated. Regarding the October 29 decision to hold rates steady, he said "the job is not done," warning about the buildup of price pressures and shifts in inflation expectations.