The CEO of Deutsche Bank says that the ECB (European Central Bank) should continue with interest rate hikes.

 

The European Central Bank needs to continue raising interest rates to curb the highest inflation in decades, said Christian Sewing, CEO of Deutsche Bank, as reported by Reuters on Tuesday.

"This poison needs to be eliminated," he said, referring to inflation at an event in Berlin. He warned that inflation weakens consumption and hinders long-term growth.

High inflation has a tremendous impact on consumers, according to Sewing. As he pointed out, at least 30% of bank customers cannot cover their usual expenses with their income and are forced to use their savings.

Consumers can tap into the savings they accumulated during the pandemic, but those will inevitably decrease, he stated.