"Too little too late" - Volker Wieland on the interest rate decision of the European Central Bank in a survey by "Börsen-Zeitung"

In a survey by "Börsen-Zeitung" on the announced interest rate hike by the European Central Bank (ECB), Volker Wieland criticizes: "It's too little too late." In his estimation, the ECB should have prepared the financial markets for tightening as early as 2021 with increasing inflation and ended the bond-buying programs. "Now it will be difficult to deliver the rapid rate hikes that the market rightly expects as recession concerns increase," Wieland cautions.

Currently, he says, short-, medium- and long-term inflation expectations have already risen significantly. According to Wieland, the risk is increasing that inflation will be well above the ECB target in the longer term.

At present, Wieland does not see any danger of a new euro debt crisis. Even in the event of higher interest rates, countries such as Italy, Spain or France would have sufficient time to change course before interest expenditure rises significantly. The ESM and the ECB's OMT program are good crisis protection, Wieland said.

Börsen-Zeitung. "Was Top-Ökonomen Lagarde & Co. raten" (€)