Euro: Nagel backs September hike path – BNY
BNY’s Geoff Yu reports that European Central Bank (ECB) Governing Council member Joachim Nagel has strongly signaled a September rate hike as Eurozone inflation stays above target and activity proves resilient.
European Central Bank (ECB) member Joachim Nagel has indicated a potential rate hike in September, despite Eurozone inflation remaining above target and economic activity staying robust. However, Nagel cautioned that the approach should be determined on a case-by-case basis due to the volatility in energy prices and uncertainty in the market.
In addition, Eurozone natural gas prices have reached a three-year high, posing renewed inflation risks and complicating policy decisions. Nagel emphasized the ECB's "meeting-by-meeting" approach, acknowledging that while a September hike is highly probable, subsequent moves will depend on incoming data regarding inflation and economic growth.
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