(Bloomberg) -- European Central Bank Governing Council member Gediminas Simkus expects borrowing costs to continue to rise as price pressures are still prevalent.

“Inflation trends haven’t disappeared,” Simkus told reporters in Vilnius on Friday. “While we must remain cautious regarding future assessment, I still believe this wasn’t the last interest rate increase.”

The Lithuanian central bank chief spoke the morning after the ECB made good on a plan to raise rates by a half-point, despite the turbulence that’s gripped banking stocks in recent days.

Simkus said lenders in the euro zone are well capitalized, stressing that price risks remain skewed to the upside as quicker core inflation stokes wage demands. The peak in rates has yet to be reached, he said. 

Simkus also said:

• Inflation pass-through takes time and fades away slowly
• February’s core inflation dynamics are worrying

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