ECB's Kazaks says inflation 'unacceptably high'

A top European Central Bank official predicted that the monetary authority would continue hiking interest rates.

According to Bloomberg, in an interview with Latvian broadcaster TV3, the head of the country's central bank reportedly said: "At the moment what we see is that that inflation is unacceptably high, in Latvia above 20%.

"Monetary policy already from last December became more restrictive: In the beginning, we were decreasing support programs and in the past few months also significantly increasing interest rates and we will continue to increase interest rates with the goal not to allow inflation” to become entrenched."

Martins Kazaks, who also sits on the ECB's Governing Council, reportedly added that it would inflict more pain to let inflation continue.

He also called attention to the need of following the appropriate fiscal and structural policies in order to combat inflation.