„We as the Governing Council must avoid a shock therapy“ | Börsen-Zeitung

ECB’s Rehn: Inflation remains excessively high. High and persistent inflation is poison for the economy.

Mr Rehn, has the danger of a recession in the euro area been averted? The economic data in the first weeks of the new year were better than expected and risks to growth and inflation are more balanced. Growth in the euro area is slowing and the outlook is still affected by the energy crisis.

But it indeed seems that a recession can be avoided, ceteris paribus. The EU Commission recently raised its growth forecast for the euro area this year from 0.3% to 0.9%. Will the ECB follow in March? The ECB projections in December had predicted 0.5%. Growth will probably be somewhat stronger than expecte...

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