BERLIN – The European Central Financial institution should rapidly increase rates of interest in keeping with the US, given excessive inflation within the euro zone, the pinnacle of Germany’s Ifo institute informed the Augsburger Allgemeine newspaper.
“The U.S. rate of interest hike results in an appreciation of the U.S. greenback in opposition to the euro, which will increase inflationary strain in Europe,” Ifo head Clemens Fuest stated, based on an advance copy of the newspaper, revealed on Friday. “On this respect, there may be some strain for the ECB to comply with.”
Whereas in the US, financial coverage impacts inflation greater than in Europe, the place vitality costs play a better position, “that doesn't change the truth that the ECB additionally has to behave,” stated Fuest.
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