The European Central Bank (ECB) intends to raise its key interest rates further and noticeably in the coming year.
"We need to take additional measures to raise interest rates at a similar pace to the last 50 basis point hike," ECB Vice President Luis de Guindos said in Madrid on Monday.
The Spaniard thus reiterated statements made by ECB President Christine Lagarde last week
Similar statements came earlier in the week from the national central bank governors of Lithuania and Slovakia, Gediminas Simkus and Peter Kazimir.
Simkus said there was no doubt the ECB would raise interest rates again by 0.5 percentage points at the next rate meeting in February.
This was the extent of the interest rate hike last Thursday.
Higher for longer
Kazimir indicated that not only would interest rates continue to rise, but they would need to stay elevated for an extended period of time to bring high inflation under control.
"The current assessment of future inflation, which we do not see at target levels even in 2025, forces us to be very aggressive and I fully agree," said Kazimir.
It is impossible to say today how high the ECB will hike rates, Kazimir noted.
"Time and inflation will tell."