By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Olaf Sleijpen said on Friday that the ECB’s 25bp interest rate hike yesterday would help return inflation to its 2% medium-term target, while stressing that policymakers would continue to monitor developments and adjust policy if necessary.

In a LinkedIn post, Sleijpen, who heads De Nederlandsche Bank, said that the decision to hike rates came “at a time of persistent uncertainty,” with the conflict in the Middle East pushing energy prices higher and adding to inflationary pressures.

“At the same time, it remains unclear how these developments will affect the euro area economy over the medium term,” he said.

The ECB remained committed to returning inflation to its 2% medium-term target, adding that Thursday’s rate hike “contributes to that objective.”

“Looking ahead, we will continue to monitor economic developments closely and will adjust our policy as necessary,” he said.