Stournaras Backs Small ECB Rate Hike to Curb Inflation Without Hurting Growth
Updated
Updated · Bloomberg · May 16
Stournaras Backs Small ECB Rate Hike to Curb Inflation Without Hurting Growth
1 articles · Updated · Bloomberg · May 16
Yannis Stournaras said a modest European Central Bank rate increase could restrain inflation while avoiding disproportionate damage to economic activity.
The Greek central bank governor argued a measured move toward tighter policy is warranted if inflation significantly but temporarily exceeds the ECB’s target.
He said such a near-term adjustment would mainly aim to limit second-round effects, signaling support for a cautious rather than aggressive tightening path.
As ECB officials clash, will a June rate hike tame inflation or derail Europe's fragile recovery?
Amidst global shocks, can the ECB’s monetary policy truly steer Europe’s economy, or are larger forces in control?