March 18 (Reuters) - Inflation in the euro zone is
proving tougher to crack than expected and the European Central
Bank will likely need to raise interest rates further, possibly
above 4%, Austrian central bank chief Robert Holzmann said on
Saturday.
"Inflation is proving much tougher than thought," Holzmann,
a member of the ECB's policymaking Governing Council, told ORF 1
radio. "I do expect some more interest rate hikes," he said,
adding that the extent of further rises would be data-dependent.
Asked how high interest rates could go, after the ECB raised
its benchmark refinancing rate to 3.50% on Thursday, he said:
"Some of us are hoping it will stay below 4 (percent). I'm
afraid it's probably going to go above 4 (percent)."
(Reporting by Paul Carrel
Editing by Gareth Jones)
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