“The ECB cannot completely catch the imported inflation drivers in the form of the dramatically increased energy and raw material prices with its actions,” said Volker Treier, head of foreign trade at the Association of German Chambers of Industry and Commerce (DIHK), on Thursday. “However, without a rate hike, the euro would become even weaker against the dollar.” Then imported energy would become even more expensive than it already is.
Not only high interest rates but also uncertain framework conditions such as high inflation rates are poison for companies. “Therefore, monetary policy should maintain the new course,” said Treier, after the ECB had raised its key interest rate sharply again from 1.25 to 2.0 percent.