In addition to the Federal Reserve (Fed), the European Central Bank (ECB) also offered hawkish statements about the prospects of its monetary policy setting in the future.
Even without the presence of President Christine Lagarde in Jackson Hole, but the appearance of four policymakers Isabel Schnabel, Villeroy de Galhau, Martins Kazakhs and Olli Rehn is enough to show the central bank's stance to continue raising interest rates.
The ECB raised rates by 50 basis points last month and a similar or bigger move is now expected at the September policy meeting.
As a summary, here are some details expressed by the four policy makers:
ECB Governing Council Member Isabel Schnabel
Despite the risk of recession, the ECB has little choice but to continue on the path towards normalization.
Inflation expectations are now at risk of moving above the medium-term target of 2%.
Rates need to remain high, warning not to stop tightening despite early signs of changing inflationary pressures.
French Central Bank Governor Villeroy de Galhau
The central bank needs another significant interest rate hike in September.
Bringing inflation back down to the 2% target is the ECB's responsibility and there is no doubt that it will need to raise rates further beyond normalization.
Governor of the Central Bank of Latvia Martins Kazakhs
Dislikes the weak value of the euro as it further increases inflationary pressures.
Expect interest rates to rise by 50 or 75 basis points at the September meeting.
Governor of the Central Bank of Finland Olli Rehn
There is also concern about the inflationary effects of the fall in the value of the euro currency.
The reality is that inflation is too high globally and in Europe, that is the reason to act.
The next step will be important in September, depending on incoming data and the inflation outlook.
Despite admitting the risk of recession is putting more pressure on the European economy, the central bank remains hawkish due to rising inflation and the Fed is also acting aggressively in raising rates.
