Two ECB hawks call for more rate hikes despite banking turmoil

The ECB raised interest rates by 50 basis points on Thursday and projected inflation would remain above its 2% target through 2025

ECB President Christine Lagarde said during her news conference on Thursday that the eurozone's central bank would have "a lot more ground to cover" in raising rates if its current forecasts held up. Alex Kraus/Bloomberg

The European Central Bank needs to keep raising interest rates because underlying price growth is sticky, two policymakers seen as hawkish said on Friday, amid continued turmoil in the banking sector.

The comments by Slovak central bank governor Peter Kazimir and his Lithuanian peer Gediminas Simkus appeared to challenge the ECB's new official line - only a day old - that future decisions will depend on how the economy and markets develop.