Italian Prime Minister Giorgia Meloni told the Parliament on Wednesday that the "simplistic recipe" of rate hikes is not the "most correct" way to fight inflation.
In her latest speech to the legislative body, the Prime Minister added that "inflation has hit European economies again, and it is right to fight it." However, Meloni continued, "rate hikes cannot end up hitting" the bloc's economies "more than inflation; the remedy cannot be more harmful than the disease."
Her remarks come a day after European Central Bank (ECB) President Christine Lagarde hinted that there could be more hikes in the future, as there is still uncertainty about the persistence of inflation.