Visco: interest rate hike must continue to reduce high inflation

The rate hike must continue. Thus the governor of the Bank of Italy Ignazio Visco who stated that rates in the euro area must continue to rise to help reduce the risk of persistent and high inflation. “We should not underestimate the risk of a too rapid normalization of rates, given the worsening economic outlook” argues the head of the Italian central bank. “There is no doubt that interest rates are still not in line with the target of 2% inflation over the medium term. The pace of rate hikes and their end point cannot be predetermined, uncertainty forces us to proceed gradually, ”says Visco.