Central Banks
Big Fiscal Boost Could Force ECB to Hike, Holzmann Tells Platow
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Higher government spending could force the European Central Bank to start raising interest rates again, Governing Council member Robert Holzmann told Germany’s Platow Brief.
Such measures would present a “very strong fiscal stimulus” that usually leads to more inflation, the hawkish Austrian official said in an interview published Friday. “In this case, monetary policy would probably have to go in the other direction again.”