BERLIN - German Chancellor Olaf Scholz on Monday said the European Central Bank (ECB) was right to raise interest rates in the fight against inflation, but that such moves were also inhibiting housing construction.

"We must massively expand activities in housing construction," Scholz said ahead of talks between the building industry and government leaders to address a major slump in the sector.

(Reporting by Andreas Rinke, Writing by Miranda Murray, Editing by Friederike Heine)