DUBLIN, April 4 (Reuters) - The impact of the European
Central Bank's interest rate hikes on financial conditions is
"well underway" and rate-setters must be alert to longer lag
effects when considering future action, ECB governing council
member Gabriel Makhlouf said on Tuesday.
"We must remain alert to the longer lags in the
transmission of monetary policy to growth and inflation. It will
be important to assess how monetary policy decisions to date are
working through the economy when calibrating further decisions,"
Makhlouf said in a speech.
The Irish central bank chief added that the ECB "must remain
steadfast and ready to act as required" to ensure inflation
returns to target over the medium-term, and that rates will need
to be kept at a restrictive level to dampen demand.
(Reporting by Padraic Halpin; Editing by Alexander Smith)
Messaging: padraic.halpin.thomsonreuters.com@reuters.net))
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