European Central Bank (ECB) interest rates are still low, and the ECB will act as needed in raising them to combat inflation risks, Governing Council member Erkki Liikanen said in an interview published today.
"If there is any risk, then we need to act," Mr Liikanen said. "We are not fixed, neither as far as timing is concerned nor size. When it's necessary to take decisions, we take them."
Euro zone inflation risks remain to the upside, and the ECB's monetary policy is still accommodative and supportive of growth - which is broad-based and near its potential, Mr Liikanen said.
The ECB raised rates by a quarter-point to 2.75 per cent on June 6th.