ECB Governing Council member Primoz Dolentz said that there are good reasons to raise interest rates next month, and the December data will further clarify future inflation trends. The governor of the Bank of Slovenia is attending the Federal Reserve's annual Jackson Hole Economic Symposium. At the conference, he said that recent economic growth has exceeded expectations and energy costs are still high. He added that the latest situation in the war in Iran has not improved significantly either. In an interview, Dolentz said, “In order to defend the inflation target, there is a realistic basis for raising interest rates in September. Judging from the latest data, the inflation situation will not resolve on its own.” Central bank officials in Frankfurt are discussing whether to continue to raise interest rates on the basis of a 25 basis point increase in borrowing costs due to the war in Iran in June. The market generally expects interest rates to rise further to 2.5% next month, and investors tend to think that more austerity measures will be introduced in the future. ECB Executive Board member Isabelle Schnabel said this week that monetary policy needs to be further tightened to return price increases to target levels. Latvian Central Bank President Martins Kazaks said that the ECB is ready to act if necessary. Despite the impact on energy prices caused by the Middle East conflict, Eurozone economic growth in the second quarter was stronger than expected. Meanwhile, inflation is likely to pick up in August and will likely remain high for the rest of the year. Dolentz said that if it is decided to raise interest rates again next month, then the last meeting of this year will be the right time to re-evaluate the situation.

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