More rate hikes to come amid 'too high' core inflation

Christine Lagarde: 'More rate hikes to come.' Picture: AP Photo/Michael Probst

The European Central Bank (ECB) needs to continue raising interest rates amid a “too high” underlying inflation rate, said Governing Council member Klaas Knot.

The ECB will have to raise borrowing costs “as long as the underlying inflation hasn’t been tamped down,” Mr Knot said in an interview.