ECB Must Be Patient on Rate Changes Says Alexander Demarco
ECB official Alexander Demarco says the bank should not rush rate hikes despite a shift toward adverse scenarios. He notes inflation expectations are anchored.
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The Eurozone economy may be gravitating toward an adverse scenario, yet policymakers should remain patient and avoid rushing interest rate hikes to combat inflation, according to European Central Bank (ECB) policymaker Alexander Demarco. The ECB recently detailed three potential paths for inflation and growth, and officials are currently weighing whether to raise rates to prevent energy-driven price increases from triggering a self-reinforcing spiral.
