ECB rate rises will be more gradual than Fed’s, says Draghi

KYIV – The European Central Bank will inevitably raise interest rates more slowly than the U.S. Federal Reserve given the different economic circumstance in the euro zone, Italian Prime Minister Mario Draghi said on Thursday.

Speaking to reporters during a visit to Kyiv, Draghi, a former ECB president, said the U.S. had full employment and inflation excluding energy and raw material prices was much higher than in the euro zone.

For this reason, while interest hikes are “inevitable” in the 19-nation currency bloc “the pace of adjustment is bound to be more gradual”.

(Reporting by Angelo Amante and Giuseppe Fonte, writing by Gavin Jones, editing by Crispian Balmer)