German Finance Minister Christian Lindner on Friday said that Germany rejects further EU "next-generation" funds, reported Reuters. Germany takes inflation very seriously, Lindner continued, adding that the EU must end expansive fiscal policy. Euro depreciation is a risk, he added.
Lindner noted that discussion regarding central banks at the G7 were very open, whilst also respecting their independence and that Germany welcomes the prospect of interest rate rises. "We must bring inflation back towards 2.0% quickly," Lindner said, emphasising the G7's determination to stop inflation.
Seperately, Bundesbank head and ECB governing council member Joachim Nagel said that more rate hikes could follow in quick succession and that most companies plan price increases. ECB policymakers have in recent weeks been priming markets for an end to QE in by the end of Q2 and a start to rate hikes in July.
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