LONDON, April 20 (Reuters) - Raising European Central
Bank interest rates too much is just as risky as not raising
them enough, Italian central bank chief Ignazio Visco said on
Thursday, rebuffing some of his colleagues who are calling for
continued rapid rate hikes.
"Some of my colleagues says it's better to err on the side
of doing too much," Visco told a lecture in London. "I think
this is wrong."
"The risk of doing too much is at least as large as that of
doing too little," Visco said, arguing that the impact of rate
hikes may be nonlinear and could disproportionately affect firms
or economies with higher debt.
(Reporting by Marc Jones; writing by Balazs Koranyi
Editing by Gareth Jones)
Reuters Messaging:
balazs.koranyi.thomsonreuters.com@reuters.net))
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