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Sarkozy urges ECB to “think twice” before rate hike

EU

The European Central Bank (ECB) should think twice before raising interest rates, French President Nicolas Sarkozy said.

In a live interview with a French TV channel, Sarkozy said the ECB should take into consideration Europe's economic growth and not just inflation while making its decisions.

The ECB is widely expected to raise its rates by 25 basis points to 4.25% when its board convenes Thursday amid record high euro-zone inflation.

Sarkozy blamed the inflation on rising product prices, but added that raising interest rates would not bring prices down.

Such a move could accelerate the imbalance of interest rates between the United States and Europe, said French Economy Minister Christine Lagarde.

The ECB's key interest rate has remained unchanged at 4% since June 2007. (Xinhua)

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