Vice-Chair of the Supervisory Board of the European Central Bank (ECB) Frank Elderson stressed on Thursday that the bank's goal is to lower the "very high" rate of inflation, further defending the policymakers' choice to raise the interest rates by 50 basis points last month.
"If high inflation like the one we are experiencing in the euro zone takes hold, it will considerably damage the economy and will affect the most disadvantaged above all," Elderson told El Pais in an interview, arguing that the aim of restrictive monetary policy is to lowering inflation by removing "excess aggregate demand."
The ECB official stressed that the exposure of Eurozone's banks to Credit Suisse turmoil is "very limited," adding that the region's financial institutions are "strong" and "resilient" with "robust capital and liquidity levels."
