ECB May Hike Interest Rates Again in September, Says Economist

Torsten Slok, chief economist at Apollo Global Management, stated that the European Central Bank (ECB) may consider raising interest rates again in September. Slok expressed this view during an interview with Bloomberg Television at the ECB Forum on Central Banking in Sintra, Portugal. He highlighted the uncertainty surrounding second-round effects of inflation, particularly in the wake of sustained energy cost increases.

Slok elaborated on his reasoning, suggesting that the ECB's decision-making process is influenced by the ongoing impact of energy prices on broader inflation. He indicated that the possibility of a September rate hike remains a significant consideration for the central bank. "I do think that they will probably still think about hiking rates in September, and I still think that there is a highest likelihood that they will hike in September," Slok told Bloomberg's Francine Lacqua.

The economist's remarks come at a time when central banks globally are grappling with persistent inflationary pressures. The ECB, in particular, has been navigating a complex economic landscape, balancing the need to control inflation with concerns about economic growth. Slok's perspective suggests that the fight against inflation is not yet over for the ECB, and further monetary tightening could be on the horizon.