ECB may raise interest rates again, says Governing Council member Dimitar Radev

Dimitar Radev, a member of the European Central Bank's Governing Council, suggests that the case for another interest rate increase in September is more compelling than the arguments for holding steady. His remarks indicate a leaning towards tighter monetary policy to combat persistent inflation.

In an interview with Econostream, Radev stated that the arguments favoring a rate hike in September are currently stronger than those supporting a wait-and-see approach. This perspective from a key policymaker signals potential further tightening of credit conditions across the Eurozone.

The Bulgarian National Bank (BNB) cited Radev's comments, highlighting the internal discussions within the ECB's decision-making body. The ECB has been gradually raising interest rates over the past year in an effort to bring inflation back to its target level.

While Radev's statement provides insight into the thinking of some on the Governing Council, the final decision will depend on the collective assessment of economic data and future inflation prospects by the entire council.