A fixed period of current interest rates would bring inflation back down to the ECB's target

　　Governing Council member, Central Bank of Spain (ESP) Governor Pablo Hernandez de Cos, said that keeping interest rates at current levels could bring inflation back to the central bank's target.

　　"On the basis of currently available information, holding interest rates at their current levels for a sufficiently long time is broadly consistent with the policy environment needed to achieve our 2 per cent inflation target," he wrote in an article.

　　"I think the inflation risks are balanced, with higher oil and food prices offset by weak consumer demand and record high borrowing costs," he added. That means he expects the weakness to continue in the current quarter.

　　A week ago, the European Central Bank raised interest rates for the 10th time in a row to combat inflation that is still above 5 percent. Since then, some policymakers have expressed hope that the rate hike will be the last step in the cycle, and Decos has joined that chorus. Most market participants now expect the ECB to hold off on further rate rises, with peak rates fixed until June next year.