Ad
'If I raise interest rates today, it is not going to bring the price of energy down,' ECB president Christine Lagarde said (Photo: Council of the EU)

Hiking rates will damage economy, experts warn

With prices surging across Europe, the European Central Bank (ECB) has come under pressure to act more aggressively to contain inflation.

Speaking to Reuters on Monday (25 April), nine ECB policymakers broke rank and anonymously criticised the bank's management for underestimating inflation and not raising rates sooner.

Energy and fuel costs have pushed inflation in Europe up to 7.5 percent, which has already slowed growth in Europe and has prompted people in some countries to

Get EU news that matters

Back our independent journalism by becoming a supporting member

Already a member? Login here

Author Bio

Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.

'If I raise interest rates today, it is not going to bring the price of energy down,' ECB president Christine Lagarde said (Photo: Council of the EU)

Tags

Author Bio

Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.

Ad

Related articles

Ad
Ad