Financial TimesFinancial Times

ECB officials warn of ‘sacrifice’ needed to tame surging inflation

By Colby Smith and Martin Arnold

27 Aug 2022 · 3 min read

Editor's Note

The FT reports on the European central bankers who are warning that slower growth and higher unemployment might be the only way to get rampant inflation under control.

A larger “sacrifice” will be needed to tame inflation than in previous bouts of monetary policy tightening, according to European Central Bank officials who warned that price growth risks spinning out of control if forceful action is not taken.

Isabel Schnabel, an ECB executive board member, and François Villeroy de Galhau, governor of the Banque de France, said on Saturday that European monetary policy would have to remain tight for an extended period of time.

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