Germany’s Scholz Tells Homeowners They Can Cope with 4% Rates

Chancellor supports ECB’s monetary-tightening campaign
Lack of savings, not just rates, weighing on house prices

23 September 2023, Bavaria, Nuremberg: Olaf Scholz speaks during an SPD election campaign rally in Nuremberg, Bavaria on Sept. 23.Photographer: Daniel Vogl/picture alliance/Getty Images

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By Arne Delfs

September 23, 2023 at 3:22 PM UTC

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German Chancellor Olaf Scholz used a campaign stop in Bavaria as an opportunity to defend the recent interest rate hikes by the European Central Bank, telling homeowners they shouldn’t have a problem with 4% rates.

“Inflation threatens economic growth and the financial power of citizens,” Scholz said at a campaign event in Nuremberg on Saturday. “That’s why it’s right that the central bank is moving strongly against it.”