ECB Executive Board member Sabine Lautenschläger said in an interview that she is “very much in favor of normalizing monetary policy”. That is, “gradually increase interest rates again”. However, she emphasized that’s on a precondition that Eurozone is “on a sustainable path towards price stability”.
Also, she noted that “after pursuing such an expansionary monetary policy, it would be wrong to now move abruptly in the other direction”. And that “wouldn’t help either the economy or price stability.”
The interview was done with Welt am Sonntag on July 30, published on August 5. It could be found in ECB’s website here.
