European Central Bank governing council member Peter Kazimir warned that inflation will spread through the economy, forcing the ECB to lift rates further.

Kazimir’s comment follows months of rising price pressures that have eroded purchasing power across the eurozone. Investors now expect a tighter monetary stance, which could push bond yields higher and squeeze borrowing costs for businesses.

The statement signals a shift in ECB policy tone and hints that the bank may abandon its current pause. Firms exposed to interest‑rate risk will need to reassess debt structures and capital plans, while markets brace for a possible acceleration in policy tightening.