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European economic resilience exceeds expectations, ECB board member Kocher says higher interest rates are sustainable

European economic resilience exceeds expectations, ECB board member Kocher says higher interest rates are sustainable

智通财经智通财经2026/09/24 07:16
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Martin Kocher, a member of the Executive Board of the European Central Bank and Governor of the Austrian National Bank, stated in an interview that the resilience shown by the European economy has exceeded expectations.

According to Jinse Finance APP, Martin Kocher, member of the ECB Governing Council and Governor of the Austrian National Bank, stated in an interview that the resilience shown by the European economy has exceeded expectations, suggesting that if further policy tightening is necessary, the European economy can withstand higher interest rates.

Kocher said: “Fortunately, since summer, we have seen the European economy sending out stronger signals, and growth momentum has strengthened.” He also pointed out that confidence indicators are improving and there is a recovery in the industrial sector.

However, he still stated that “the economic situation remains fragile,” adding, “We are taking necessary interest rate actions while avoiding unnecessary adjustments.”

Kocher said: “As I have mentioned, rate hikes always dampen overall demand and, of course, bring some pain. Naturally, it would be more ideal if we can achieve the 2% inflation target without further rate increases.”

The ECB has raised borrowing costs twice, and the market generally expects it to raise rates again, with expectations that there will be three more actions in this tightening cycle.

Kocher is usually seen as one of the more hawkish members of the ECB Governing Council, but he has not made a clear statement regarding the next steps.

He stated: “Given the high level of uncertainty and the price shocks brought by the situation in the Middle East, we will reassess circumstances at each meeting.”

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