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Italian finance minister says rate hikes must not trigger tensions

reuters.com · 06/10/2022 10:19
Italian finance minister says rate hikes must not trigger tensions

- Central bank interest rate hikes must not trigger tensions, Italy's finance minister Daniele Franco said on Friday, a day after the European Central Bank said it would raise interest rates next month for the first time since 2011.

Franco said that interest rate increases were less relevant when in reaction to supply shocks pushing up inflation than when strong demand was the trigger for higher inflation.

"What we should avoid is introducing in this context unnecessary tensions, and central banks should try to select a trajectory that takes into consideration the factors underlying the increase in the inflation rate," Franco told a news conference after an OECD ministerial meeting in Paris.


(Reporting by Leigh Thomas; Editing by Catherine Evans)

((leigh.thomas@thomsonreuters.com; +33 1 4949 5143;))