Frankfurt. Executive Board Member European Central Bank, Juergen Stark said monetary authorities would raise interest rates if needed to keep inflation.
"We are ready to act decisively and quickly if the increase is very necessary," Stark said in a ceremony in Frankfurt last night. According to him, central banks need new policies in keeping the inflation rate.
The concern, among others, the German government plans to reduce net debt of about 35 billion euros in fiscal year 2012. Germany also refused to give European rescue fund. Instead, in 2013 the government will buy bonds in the secondary market. According to Stark, so far the Irish became one of the most consuming countries of Europe and caused the financial crisis.
DAX Index lost 1.4% to 7,321.81. The Stoxx Europe 600 Index fell 1.3% to 287.18. The MSCI Asia-Pacific Index fell 1.9% to 137.02 as of 07:25 Frankfurt time. German bond yield with a tenor of 10 years to reach 3.182%. last, the euro above the level of parity is U.S. $ 1.359.
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