ECB’s Guindos: rate hikes to keep going at "a similar pace"

Luis de Guindos, vice-president of the European Central Bank (ECB), said that the growth of borrowing costs is going to be similar to the rate of interest rate hikes. This is due to the regulator's efforts to tame soaring prices in the Eurozone.

The central bank is planning to raise interest rates until inflation returns to the 2% target, as reported by Luis de Guindos at a press conference in Madrid. He said that the actions taken so far are not sufficient to meet the target.

The ECB's Vice President stressed the need for additional measures to raise interest rates in the Eurozone. But the growth of borrowing costs should correspond to the pace of rate hikes. 

Despite the fact that the last meeting of the regulator ended with a smaller rate hike (50 basis points) than the previous two, appreciation of borrowing costs is still far from being over. The current inflation level of 10%, on the other hand, exceeds the bank's target of 2%. The "hawkish" stance of the ECB prompted economists and investors to raise their forecasts regarding the ECB's future actions.