“Rates too high? No. They’re the only way to fight inflation.” The interview
“Raising interest rates risks doing even more damage than inflation”. This was stated in the Chamber in view of the Brussels European Council Giorgia Meloni, who considers monetary tightening “a cure more harmful than disease”. But hasn’t the Central Bank really taken charge of the risks that European citizens, the true victims of the crisis due to inflation, would run? To understand more, Affaritaliani.it he questioned Nicoletta PapucciMarketing Director of MutuiOnline.
Papucci, the government claims that new hikes could lead to recession. What do you think?
“The government, technically, is right. The risk of going into a recession exists, but it doesn’t necessarily mean that it will actually arrive. For example, the United States, albeit with a higher rate hike than the European one, managed to avoid it. Germany, on the other hand, despite its notoriously strong ‘engine’, has been affected. Unfortunately, the reality is that the ECB has no other way to bring inflation down. There are no other solutions other than rate hikes”.
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And with the recession, would inflation go down?
“Potentially yes. If this phenomenon were to occur in Italy, with the reduction of demand and consequently of the GDP, inflation should drop”.
To try and make predictions, when will the price run subside significantly?
“If at the moment inflation in Italy corresponds to 6.2%, we can expect it to drop by 2024, remaining above 4% anyway. Furthermore, the possibility that the basic level of the European Union will change and settle above today’s target of 2% is becoming increasingly widespread”.
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