Radev Blasts ECB Rates as Inadequate, Says Tightening Cycle Far From Over

Dimitar Radev isn't mincing words. The ECB Governing Council member and Bulgarian National Bank Governor called the central bank's interest rates 'inadequate' on Tuesday. And he made clear the October pause is no finale to the tightening cycle.

Radev warned the economic landscape is turning more hostile. He said the October decision to hold rates steady doesn't mean the ECB is done. Far from it.

On inflation, Radev sees core prices holding steady. The energy shock hasn't seeped into wages yet, he noted. But he cautioned the ECB can't afford to wait for second-round effects before acting.

His stance echoes other ECB voices. Fabio Panetta said Friday that more rate hikes might be needed to tame inflation, according to Breaking The News. The chorus for continued tightening is growing.

Globally, central banks are still in fight mode. Australia's Reserve Bank raised its benchmark rate by 25 basis points on Tuesday, now at 4.85%. That's its fifth hike this year.

So what's next? Radev's warning keeps the door open for more tightening. All eyes will be on the next ECB policy meeting to see if the central bank follows through.