Germany’s central bank boss says eurozone rate-setters must be “stubborn” and continue raising borrowing costs to tackle inflation, discounting fears that recent financial turmoil could further affect Europe’s banks.
“Our fight against inflation is not over,” Joachim Nagel told the Financial Times after he and other members of the European Central Bank’s governing council stuck to plans to increase interest rates by half a percentage point last week.
“There’s certainly no mistaking that price pressures are strong and broad-based across the economy,” the Bundesbank president said. “If we are to tame this stubborn inflation, we will have to be even more stubborn.”
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