ECB Policymaker Kazaks Calls for Further Gradual Interest Rate Rises to Fight Inflation

An ECB policymaker says the bank may need to keep raising rates before rising fuel costs embed themselves further into prices and wages.

An ECB policymaker is calling for continued gradual interest rate increases, warning that energy-driven inflation could entrench itself if the bank acts too slowly. Martins Kazaks, a member of the European Central Bank's governing council, told Reuters that the ECB may need to tighten monetary policy further to get ahead of inflation pressures. Kazaks specifically cited a rise in fuel costs linked to conflict involving Iran as a risk that could feed through into wages and broader consumer prices — a process economists call second-round effects. His concern is that once energy price spikes start driving up wages and other costs, inflation becomes significantly harder and more costly to bring back down. The ECB has been on an aggressive rate-hiking path in recent years to combat elevated inflation across the eurozone. The call from Kazaks signals that at least some policymakers believe the job is not yet finished, even as higher borrowing costs squeeze households and businesses across the bloc. The remarks were made on September 14 and reported by Reuters correspondent Francesco Canepa from Frankfurt.

Why it matters

Further ECB rate hikes would raise borrowing costs for millions of eurozone households and businesses, affecting mortgages, business loans, and economic growth across the bloc. If the ECB moves too slowly, an energy-price shock could lock in persistently higher inflation.

What's next

Markets and analysts will watch upcoming ECB governing council meetings for signals on whether a majority of policymakers share Kazaks's view that more rate hikes are warranted.

Key facts

• ECB governing council member Martins Kazaks made the remarks on September 14, as reported by Reuters
• Kazaks identified a war-related rise in fuel costs linked to Iran as a key inflation risk
• His concern centers on second-round effects: energy prices passing through to wages and other consumer prices
• Kazaks called for 'gradual' rather than abrupt further interest rate increases
• The remarks were reported by Reuters' Francesco Canepa from Frankfurt

Bias & framing notes

Both sources carry the same Reuters report by Francesco Canepa, making this effectively a single-source story. There is no independent corroboration or alternative perspective from other ECB policymakers, critics, or economic analysts. The framing is entirely shaped by Kazaks's own stated view, with no dissenting voices represented.

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