ifo President Fuest Welcomes the European Central Bank’s Interest Rate Pause

The ifo President Clemens Fuest has welcomed the decision by the European Central Bank (ECB) to leave interest rates unchanged. “This is a good decision. Rapid interest rate hikes over the past year or so have helped to dampen inflation and stabilize inflation expectations, and this development is expected to continue in the months ahead. However, it is still too early for interest rate cuts. These must wait for inflation to decline further. Especially given high wage settlements and energy price risks, there’s no guarantee that this will happen.”