© Reuters. FILE PHOTO: Christian Sewing, CEO of Deutsche Bank AG in Frankfurt, Germany January 30, 2020. REUTERS/Ralph Orlowski/File Photo
BERLIN (Reuters) – The European Central Bank must keep raising interest rates to rein in the highest inflation in decades, German Bank (ETR:) CEO Christian Sewing said Tuesday.
“This poison must go out,” he said, referring to inflation at an event in Berlin. He warned that inflation weakens consumption and hinders long-term growth.
High inflation has a massive impact on consumers, Sewing said. At least 30% of bank customers could no longer meet their normal expenses with their income and had to use their savings, he said.
Consumers can use savings accumulated during the pandemic, but these will tend to dwindle, Sewing warned.