Scholz Warns of Jeopardizing ECB Rate Cut With Inflation Rebound
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German Chancellor Olaf Scholz urged restraint to avoid a new bout of inflation that would prevent the European Central Bank from lowering interest rates.
“It’s important that we examine whether the fight against inflation has worked and we are heading toward 2% — and that we don’t prevent the ECB, which decides independently, from drawing its consequences for the level of interest rates,” Scholz told citizens in Chemnitz, Germany, late Friday. “That will of course help the economy and investments, but let’s wait and see, so that we don’t end up in another inflationary spiral.”