The International Monetary Fund (IMF) suggested the European Central Bank (ECB) continue increasing interest norms until the middle of 2024, requesting from EU finance ministers to toughen fiscal policies, in order to decrease inflation.
The head of IMF for Europe, Alfred Kammer, said that the high level of inflation is the biggest concern.
The comments were made before a meeting he held with EU finance ministers and governors of the European Central Bank.
“Our main recommendation, as far as policies are concerned, is to beat the inflation and this means we must use monetary policies. To the European Central Bank this means further pressure, for a longer period. We estimate until the middle of 2024, so that the inflation falls down until its intended level foreseen around 2025. The inflation is a tax, especially for the poor, and we must fight it,” Kammer said.
Inflation in the 20 countries that use the Euro reached 6.9 percent in March – however the base inflation, which excludes big oscillations in energy and food prices, reached 7.5 percent.
To decrease it, the European Central Bank has aggressively raised interest norms, sending them from 0 to 3.5 in the span of a year, a policy expected to last even after 2023.
