A top policymaker at the European Central Bank (ECB) has warned in an interview with Germany's Suddeutsche Zeitung that raising interest rates too soon could harm the economy.
According to the ECB's projections, medium-term inflation could in fact fall back below the Eurozone central bank's target of 2%, dpa reported.
"That is why we should not raise interest rates prematurely, as that could potentially choke off the recovery," ECB board member Isabel Schnabel told the newspaper, in an interview published on Saturday.
However, Schnabel assured that the ECB would act "quickly and decisively" if its experts conclude that inflation may settle above that 2% mark. Inflation in the euro area currently stands at 5%.
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