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G7 nations determined to stop rising inflation and strengthen growth

Published May 20,2022

The members of the G7 group of industrialized nations are determined to stop rising inflation and "strengthen growth" with consistent measures, according to German Finance Minister Christian Lindner.

His G7 counterparts agreed that the inflation posed an enormous threat to further economic development, Lindner said on Friday after a meeting.

Lindner stressed that the central banks are very independent, but they have a great responsibility at the moment, while Joachim Nagel, the president of Germany's central bank, called for decisive action from the European Central Bank (ECB).

"The central banks have to make sure that the observed very strong inflation does not become firmly established," he said.

The inflation rate in the euro zone recently reached a record high of 7.4% in April, far above the ECB's target of 2% in the medium term.

The financial markets expect the ECB to raise interest rates in July. The Bank of England and the US Federal Reserve have already raised interest rates significantly.

The G7 health ministers meanwhile met in Berlin on Friday and called for tools to better handle future pandemics.

Their goal is to recognize outbreaks more quickly and react more effectively. The ministers drew up a "pandemic pact" establishing that the early warning centre of the World Health Organization (WHO) in Berlin should be used as a core hub.