The central bank has kept its main interest rate at 7.00% since last June when it delivered the last hike in a year-long tightening cycle.
“The situation that rates have been unchanged for a long time makes people think that the central bank is not doing enough, and from my point of view even the signal effect of a further increase in interest rates would be significant,” Holub said in a televised debate.
When asked if a hike would make sense at the next monetary policy meeting on June 21, Holub, who has consistently backed rate hikes, said yes.
“If we have the risk of a wage-inflation spiral here, then sending the signal is still meaningful to me,” Holub said.
The central bank expects inflation, which eased to 12.7% year-on-year in April, to come down nearer its target early in 2024.
Source: Economy - investing.com
