ECB's Dolenc signals further rate hikes amid inflation risks

ECB Governing Council member Primoz Dolenc stated that further interest rate increases may be necessary due to elevated upside risks to inflation, though timing and magnitude remain uncertain. He noted limited pass-through of energy costs to other goods and services, reducing second-round effects on wages. This hawkish commentary suggests the ECB's tightening cycle may not be over, potentially supporting the euro and pressuring eurozone bonds.