© Archyde.com. The head of the Bundesbank: The European Central must act to return inflation to its target
In a statement accompanying the updated economic outlook for Germany, German Central Bank President Joachim Nagel said that the European Central Bank should act aggressively to bring inflation back to its target.
And, as “Bloomberg” reported, “Nagel” added: Inflation in a region will not slow down on its own, so monetary policy must respond firmly to combat inflation.
These comments come after the European Central Bank yesterday raised its inflation forecast, and pledged to raise interest rates by 25 basis points in July.
The economic vision presented by the Bundesbank on Friday showed that the average inflation in Germany reached 7.1% this year instead of the previous estimate of 3.6%, 4.5% in 2023, and 2.6% in 2024.