ECB's Kazaks says it is clear prices will be higher, and growth will be slower; further interest rate increases are needed "if inflation spreads from energy" no matter the current levels

Kazaks' comments indicate a more hawkish stance from the ECB, suggesting that they prioritize managing inflation risks even if growth slows. The mention of potential further rate hikes signals that the central bank is prepared to act aggressively if inflation broadens beyond energy, which could impact market expectations for future monetary policy and drive EUR volatility.