The European Central Bank will continue to raise the rate amid the eurozone economy is still suffering. Top ECB policymakers say that it will be worse if inflation stays high. So the vice president emphasized that quantitative tightening would take effect immediately.

The ECB has been raising interest rates at a record pace amid double-digit inflation. The ECB has a target to make inflation fall to 2%. With various existing considerations, the ECB will focus more on normalization in a sustainable economic sector.

This target, of course, requires more exclusive handling, so Luis de Guindos said they would involve all means for economic growth. He knows there is a high possibility of adding a significantly elevated rate to improve economic conditions.

However, an additional concern is that inflation is considered to have not yet reached its peak position. Economists say that they are worried that the ECB is still forcing rate hikes; this will worsen European economic conditions with high demand.

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Vice President Luis de Guidos Says If This Is Their Job, Quantitative Tightening Will Go Into Soon

ECB vice president Luis de Guindos and Bundesbank President Joachin Nagel said it would involve costs to encourage economic growth. He noted that conditions like this must be addressed immediately, and tightening the economy is their job.

"I will … do my utmost to ensure that we, the Governing Council of the CB, do not let this all go too fast, and we will continue to push for normalization of monetary policy – even if the calculations are a little off," Nagel told a German Banking Conference this Tuesday.

"Because in a situation where monetary policy gets behind the curve, overall economic costs will also be higher," Nagel said. After that, De Guindos also added a statement and said that reducing aggregate demand is a possible way forward, so it doesn't get worse,"

In addition, the euro zone's economy is also believed to shrink during winter, and this could occur due to a combination of higher energy costs, weaker global demand, and higher borrowing costs. De Guindos said that quantitative tightening is a way to overcome this.

"The characteristics and the timing of our (quantitative tightening policy), which may overlap or not with the condition of interest rate normalization," added Guindos. However, he assured the public that the ECB would remain cautious.

Economists Urge European Central Bank Not To Stop Rate Hikes Before Inflation Peaks

Previously, there was a statement from Vice President Luis de Guindos: "We will continue raising rates to a level that ensures inflation will return to the line that has been set based on our definition of price stability. And we have to do our job here."

De Guindos also said they would be open to another jumbo 75 boss rate hike in December. The ECB wants to get inflation back to its target of 2%. Meanwhile, inflation is believed to reach its peak level, around double digits.

At the same time, many concerns arise and say that the ECB should immediately make more stable interest rates and overcome economic conditions, so they do not get worse. One economist noted that rising interest rates would make Europe worse.

However, the statement was directly opposed by France's central bank chief, who said that before inflation reached its peak, the ECB had the freedom to make higher interest rates. The pace of rate hikes needs to be made slower to make it more based.

Eurozone inflation is a concern for many people, especially economists. It was stated that the policies taken by the ECB were not entirely correct. But before inflation reaches its peak, experts stress that this is the best move the European Central Bank can take.