Sarkozy urges ECB to “think twice” before rate hike
The European Central Bank (ECB) should think twice before raising interest rates, French President Nicolas Sarkozy said.
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)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.