It’s “absolutely necessary” for the European Central Bank to raise interest rates, Governing Council member Gabriel Makhlouf said.
(Bloomberg) — It’s “absolutely necessary” for the European Central Bank to raise interest rates, Governing Council member Gabriel Makhlouf said.
“A pivot to further tighten monetary policy has been necessary, as history has taught us that these issues will only be exacerbated if we delay action,” Makhlouf said Thursday, according to the text of a speech he gave in Dublin.
“Raising interest rates is absolutely necessary as persistent inflation is damaging to macroeconomic stability and the community’s longer-term living standards,” he said.
Makhlouf also said:
- “The reduction of public debt, supported by a sustainable funding base for public expenditure, should remain a key priority in the years ahead”
- “As interest rates rise, financial markets are more likely to increase the focus on fundamentals such as relative debt levels when pricing sovereign bonds. Credit worthiness will continue to matter”
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