Volker Wieland calls for clear signal from ECB to fight inflation (Handelsblatt)

According to Prof. Volker Wieland, it is high time that the European Central Bank (ECB) sends a clear signal to fight inflation - "and in the form of an interest rate hike as early as June". The ECB has ignored the warning signals for too long, he said in an argument with economist Sebastian Dullien, hosted by "Handelsblatt." "Above all, it must keep inflation expectations under control," Wieland warned. However, he did not expect a rate hike at this Thursday's council meeting.

According to Wieland, an interest rate level of 1.5 percent is not yet appropriate. "By contrast, I think it is likely that interest rates will have to rise higher," he said. In the discussion about new instruments with which individual countries can be specifically supported, Wieland referred to the OMT program. He said it already allows the ECB to buy bonds of individual countries in a targeted manner. "However, this is tied to conditions for their fiscal policy within the framework of an ESM program." New proposals aim to allow aid without conditions, he said. "This is fatal."

Handelsblatt: "EZB sollte eher zu früh als zu spät reagieren"