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"Right decision to raise the key interest rate moderately"

The European Central Bank raised key interest rates by 25 basis points to 3.75 Percent. CEO Jörg Asmussen comments this decision.

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© Unsplash / Charlotte Venema

Jörg Asmussen, Chief Executive Officer of the German Insurance Association (GDV):

The ECB's decision today to raise the key interest rate moderately is the right one. Its medicine is already having an effect, as can be seen from weaker lending in the euro area. But the inflation rate is still well off its target value; it even rose slightly in the euro area in April. The core inflation rate also remains too high, and the divergence of inflation in the euro area makes it difficult for the ECB to pursue a uniform monetary policy. Until it is clear that inflation has peaked and the inflation target of two percent is within reach, the ECB should not relax its course.

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