ifo President: ECB Has Good Reasons for Interest Rate Hike

“The reasoning behind the ECB’s interest rate hike is sound. Inflation remains high despite the economic slowdown. The ECB has raised its inflation forecast for 2024, and against this backdrop an interest rate increase is logical,” he said in Munich on Thursday. “For Germany, this increase is painful given the contraction of the country’s economy. However, the ECB makes monetary policy not just for Germany but for the euro area as a whole.”