ECB’s Kazimir says second round effects are costly to reverse, ECB must act before they are visible; at least one more hike needed as part of measured adjustment to inflation risks

A rate hike will be warranted even if the inflation situation improves somewhat. Should the situation escalate, with the price pressures becoming stronger and more persistent, we will need to tighten more over the next quarters than is currently expected. Incoming data and geopolitical developments would need to be very convincing to do for me not to advocate another hike in September; We didn’t surprise the markets now, we shouldn’t surprise them in September.