European economy's resilience exceeds expectations, ECB Governing Council member Kocher says it can withstand higher interest rates.

European Central Bank Governing Council member and Austrian Central Bank Governor Martin Kocher said in an interview that the European economy has shown greater resilience than expected, indicating it can withstand higher interest rates if further tightening is still necessary. Kocher said: "Fortunately, since the summer, we have seen stronger signals from the European economy, with growth momentum strengthening." He also noted that sentiment indicators are improving and a recovery is emerging in the industrial sector. However, he still said that "the economic situation remains fragile," adding that "the necessary interest rate actions are being taken while avoiding unnecessary adjustments." Kocher said: "As I said, rate hikes always dampen aggregate demand and, of course, cause pain. Naturally, if we could achieve the 2% inflation target without further rate hikes, that would be more ideal." The ECB has raised borrowing costs twice, and the market widely expects another rate hike, with three more moves anticipated in this tightening cycle. Kocher is generally regarded as one of the more hawkish members of the ECB Governing Council, but he did not make a clear statement on the next step. He said: "Given the high uncertainty and the price shocks brought by the situation in the Middle East, we will reassess the situation at each meeting."