BERLIN, (Reuters) – The European Central Bank needs to quickly raise interest rates, in line with the United States. In view of high inflation within the euro area, Germany’s Ifo chief told Augsburger Allgemeine that the bank must do so.

Clemens Fuchs, head of Ifo, said that the U.S. interest rates hike will lead to an increase in dollar value against the euro. This was according to an early copy of the paper, published Friday. This is a good example for the ECB.

Fuest said that while inflation is affected more in America than it is in Europe (where energy prices are greater), “that doesn’t change the fact the ECB too has to act.”