ECB’s Kazaks: Shouldn’t rule out a 50 bps rate hike

European Central Bank policymaker Martins Kazaks said on Tuesday that the bank should not rule out a 50 bps rate hike, and that he sees possible rate hikes in July, September and potentially one more in the fourth quarter.

Kazaks ‘ comments come after fellow ECB policymaker Robert Holzmann called for a 50 bps move in July,, ECB’s Francois Villeroy de Galhau said a 50 bps rate hike isn’t yet consensus at the bank and ECB President Christine Lagarde reiterated that the bank will take rates out of negative territory in the third quarter.

The European Central Bank should consider raising interest rates by half a percentage point if justified by the inflation outlook, Governing Council member Martins Kazaks said.

A shift in gear to hiking by 50 basis points is “certainly one thing that we could discuss,” Kazaks, the Latvian central bank chief, said in an interview in Riga on Monday.