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'If I raise interest rates today, it is not going to bring the price of energy down,' ECB president Christine Lagarde said (Photo: Council of the EU)

Hiking rates will damage economy, experts warn

With prices surging across Europe, the European Central Bank (ECB) has come under pressure to act more aggressively to contain inflation.

Speaking to Reuters on Monday (25 April), nine ECB policymakers broke rank and anonymously criticised the bank's management for underestimating inflation and not raising rates sooner.

Energy and fuel costs have pushed inflation in Europe up to 7.5 percent, which has already slowed growth in Europe and has prompted people in some countries to

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'If I raise interest rates today, it is not going to bring the price of energy down,' ECB president Christine Lagarde said (Photo: Council of the EU)

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