Will ECB Stand Up to German Resistance?

The European Central Bank (ECB) would be best placed to rebuff fresh cries from German advocates to lift interest rates and end its bond buying program, according to a euro zone economist.

The latest euro zone inflation figures released on Wednesday showed an uptick of its yearly rate by 0.5 percent to 1.1 percent, its highest level in three years. The jump in consumer prices resulted in revived calls from Berlin for the ECB to strongly consider an interest rate hike.

“It is time for a normalization… Now a change in interest rates is doable,” Stefan Bielmeier, chief economist at DZ Bank, told German newspaper Bild daily.

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.