Konjunktur: EZB-Vize Vujcic warnt vor Schäden für Wirtschaft durch Inflation

Frankfurt - The European Central Bank's Vice President, Boris Vujcic, has raised concerns about the potential harm that persistently high inflation rates could inflict on the European economy. Speaking in a Reuters interview published on Friday, the Croat warned that if inflation persists into the autumn and affects household incomes and consumer behavior, it could slow down the Gross Domestic Product (GDP) of the Eurozone.

In contrast to the spring, the European economy grew impressively by 0.6 percent despite the challenges posed by rising energy prices due to the Iran conflict. The European Central Bank (ECB) recently raised the key interest rate for the second time this year to 2.5 percent as part of its fight against high inflation. It also raised its economic growth forecasts for the year, projecting a 0.9 percent increase in GDP, compared to the 1.4 percent growth expected for 2027.

Furthermore, the bank anticipates a prolonged inflationary pressure stemming from the conflict in the Middle East. Higher interest rates would make loans for consumers and businesses more expensive, potentially dampening demand and easing inflation. However, increased interest rates are a burden for the Eurozone economy. If the ECB raises rates too aggressively, it risks throttling the economic growth.