ECB's Kazaks warns of rate hikes if oil shock deanchors inflation expectations

European Central Bank Governing Council member Martins Kazaks stated that the ECB would raise interest rates if surging oil prices from the ongoing US-Israeli war on Iran cause inflation expectations to become "deanchored," meaning they drift persistently higher than the bank's 2% target. Speaking on Thursday, Kazaks emphasized that such a development would force policymakers to act to preserve price stability across the 20-nation eurozone.