ECB must be prepared to lift interest rates further, top policymaker tells FT

Business Recorder reported that Gabriel Makhlouf, a Governing Council member at the European Central Bank, said the institution should be prepared to increase borrowing costs again if price pressures move upward. In an interview with the Financial Times released on Wednesday, he did not rule out further rate increases should inflation head in an unwelcome direction. His remarks signal that the bank is keeping additional tightening on the table rather than closing the door on it.

He also said the decision due next week would not come as a surprise. Makhlouf added that he expected the ECB to slightly raise its euro zone growth forecast for this year. The remarks offer a view from one policymaker rather than a formal ECB decision.