The ECB Must Keep Interest Rates At Or Near 4% In 2024 To Curb Inflation

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The European Central Bank (ECB) should keep interest rates at or near 4.0% next year to reduce inflation, International Monetary Fund (IMF) European director Alfred Kammer said on Wednesday.

“The ECB’s deposit rate should remain at a record high near 4% throughout next year.”

“Monetary policy has been appropriately tightened and will still need to be so in 2024.”

“For all intents and purposes, deposit rates should remain at or close to that level throughout 2024.”

“It’s cheaper to be too tight than too loose.”

“We also want to avoid premature celebrations.”

“Risks remain tilted towards more persistent inflation.”

“Under adverse assumptions, this could delay the achievement of the inflation target until 2026.”