ECB Governing Council member Fabio Panetta said that in order to curb inflation, the ECB may need to continue raising interest rates. On Friday, Bank of Italy Governor Panetta delivered a speech in Rome. Just a few minutes ago, data showed that the increase in consumer prices in the country surged beyond expectations. He said that inflation prospects are deteriorating, and the economy is still growing, but it is fraught with risks. Panetta said, “Inflation is expected to remain above 2% for several quarters, and the upward pressure on core inflation is likely to increase further. Given that inflation will be above target for a long time, and risks are biased upward, it may be necessary for the central bank to continue to raise policy interest rates.” People familiar with the matter revealed on Thursday that after policymakers keep interest rates unchanged in the Eurozone, officials are preparing to raise interest rates in December if the outlook for inflation does not improve.

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