How high can the ECB take interest rates?

ECB + bridge

High inflation demands action from European Central Bank (ECB) officials, economists say, but they also urge the central bank to proceed with caution to avoid tipping the economy back into recession.

In March, inflation in the eurozone hit 7.4%, the highest level since the creation of the euro in 1999. That echoed the reading recorded in the US, where consumer price index inflation rose to 8.5% last month. In both regions, inflation continues to rise above the central banks’ 2% targets.

“Given

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