Global Market | ECB May Need Further Rate Hikes if Energy Prices Stay High: Nagel
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The European Central Bank (ECB) may need to raise interest to restrictive levels in order to contain inflation, said Joachim Nagel, President of the Bundesbank, the German central bank, and member of the ECB's board, one day after the monetary authority has raised the euro area reference rate by 0.25 percentage point to 2.5%. Nagel stressed that monetary policy will depend mainly on energy price developments in the coming months. We are at the u…
"It will be very dependent on how energy prices evolve," explained Joachim Nagel the day after the ECB's 25 basis points (bp) rise. The German governor also considered that the reference 2.5% corresponded to the upper limit of the neutral rate, a concept that Lagarde had devalued the previous day as "highly conceptual".
The Economic Times
Times of IndiaGlobal Market | ECB may need further rate hikes if energy prices stay high: Nagel
ECB policymaker Joachim Nagel said the central bank may need to raise interest rates further if elevated energy prices persist, potentially moving policy into mildly restrictive territory. The ECB raised its key rate to 2.50% on Thursday, while the outlook for future hikes will depend on energy prices and inflation trends.
The president of the German central bank, Joachim Nagel, warns that the evolution of inflation and energy prices will be key to deciding whether the ECB will raise rates again.
Key takeaways Joachim Nagel, Governor of the Deutsche Bundesbank, stated in an interview with CNBC that future interest rate adjustments by the European Central Bank will largely depend on the development of energy costs. That statement follows the ECB's decision to raise its base interest rate by 0.25 percent, bringing it to 2.5 percent […]
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