IMF head welcomes Europe's interest rate hikes in campaign against inflation
The head of the International Monetary Fund has praised the European Central Bank’s decision to raise interest rate for the eighth time in a row
FRANKFURT, Germany (AP) — The head of the International Monetary Fund on Friday praised the European Central Bank's decision to raise interest rates for the eighth time in a row and its pledge to keep going as long as needed to bring down high inflation.
Managing Director Kristalina Georgieva said the IMF welcomed both the ECB's quarter-percentage point rate hike Thursday and President Christine Lagarde's vow that the ECB is “not thinking about pausing.” The bank is trying to lower inflation from 6.1% to its goal of 2%.
“Monetary policy should continue to tighten and then remain in restrictive territory for some time until inflation expectations are firmly anchored and inflation trends toward target,” Georgieva said.
“We welcome yesterday's decision of the ECB to tighten, we also welcome the communication that surrounded this decision,” she added.
