Don’t Make ECB’s Job Harder, Top Economic Adviser Tells Germany
- Chief economic expert asks for prudence when taking on debt
- Can’t ignore danger of unanchoring of inflation expectations
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German Chancellor Olaf Scholz’s government must be careful not to undermine the European Central Bank’s inflation fight by taking on unnecessary debt, according to the country’s chief economic adviser.
The danger that inflation expectations deanchor still can’t be ignored, Monika Schnitzer who leads an independent five-member panel that monitors the economy, told journalists in Frankfurt. That means the ECB’s campaign to raise interest rates “isn’t and shouldn’t be over yet.”