Euro zone inflation expectations are at risk of rising more quickly than in the past, according to ECB policymaker Dimitar Radev. Radesi, head of Bulgaria's central bank and one of the newest members of the ECB's Governing Council, warned that the European Central Bank must be prepared to raise interest rates if persistent price pressures emerge. The risk is that consumers and businesses may adjust their expectations, leading to an inflation spiral that proves costly to extinguish. Despite inflation expectations remaining at the target, the ECB cannot take this benign outcome for granted due to the fragile environment.