ECB: Economy won't thrive if inflation too high

ECB: Economy won
# 10 February 2023 19:25 (UTC +04:00)

Member of the Executive Board of the European Central Bank (ECB) Isabel Schnabel said on Friday that the economy in the region will not be able to "thrive" if the inflation is "too high," arguing that monetary tightening is necessary to achieve the optimum inflation rate, APA reports citing Teletrader.

"Rates must reach a sufficiently restrictive level. We need to see that our policies are being transmitted to the economy. We'll keep rates high until we see robust evidence that underlying inflation returns to our target in a timely and durable manner," Schnabel further explained in a Q&A session on Twitter.

"By fighting high inflation we are supporting the sustainable growth of the euro area economy," she underlined, adding that 2% inflation objective provides a "safety margin against deflation risks" and "eases the constraint from the zero lower bound on interest rates."