Martin Kocher leads the Austrian Central Bank. He says: Prices for many things rise fast. This is called 'Inflation'. The ECB must then act. The ECB is the bank for all Europe. It could raise the 'Zinsschritt'.
High interest rates make loans more expensive. This stops the rise of prices. The ECB kept rates stable in April. Kocher says: That was good. But they must not wait too long. Energy prices are very high.
The war is a reason for high prices. There is much violence in the Middle East. This hurts the economy in Europe. People notice this in 'Österreich' and 'Deutschland'. Kocher warns of 'Stagflation'. This means low growth and high prices.
People also worry about wages. They want more money for higher prices. This can push prices up even more. Kocher calls this 'Zweitrundeneffekten'. The ECB meets on June 11. They decide on interest rates there.
Kocher talks about the freedom of banks. Politicians must not interfere. He names 'Donald Trump' from the 'USA' as example. A national bank must decide on its own. Only then is money safe.
