Raising interest rates is absolutely necessary to contain inflation, says ECB official

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The process of raising interest rates in the euro zone is “absolutely necessary” amid the persistent escalation of inflation, said the governor of the Irish Central Bank and head of the European Central Bank (ECB), Gabriel Makhlouf, this Thursday ( 15).

“A turn to tighten monetary policy further was necessary, because history has taught us that these inflation issues will only be exacerbated if we delay action,” he said, speaking at a conference in Dublin.

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Last week, the ECB intensified its monetary tightening and raised interest rates by 75 basis points, after a first 50 basis point hike in July.

According to Makhlouf, the objective is to allow the economy to adjust to the supply shocks it has faced recently.

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“By ensuring that inflation returns to the 2% target over the medium term, the ECB’s recent monetary policy actions can help to ease pressure on real household incomes and create the conditions for a return to sustainable growth and improved standards. of life”, highlighted the ECB leader.

Source: CNN Brasil

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