Joe Nellis Says ECB Rate Hike Would Be a Decisive Move to Curb Inflation

MHA economic adviser Joe Nellis said policymakers are making a prudent decision to act decisively to curb inflation, despite widespread concerns that economic growth could be hit. According to Jin10, Nellis said the European Central Bank is expected to raise its benchmark interest rate on Thursday. He noted the ECB has faced criticism for responding too slowly in 2022 to 2023, which he said contributed to inflation rising to above 10%. Nellis added that while economic growth in the region remains weak, the ECB is signaling it is prepared to take action. He said higher interest rates can attract foreign capital, which may strengthen the euro and put downward pressure on prices, though he added this would not fully offset the cost to economic growth.