ECB’s Nagel sees another hike as second-round risks mount
The President of the Bundesbank, Joachim Nagel, who is also a member of the European Central Bank (ECB) Governing Council, hinted that the ECB would need to raise interest rates again.
Joachim Nagel, President of the Bundesbank and a member of the European Central Bank (ECB) Governing Council, indicated that the ECB may need to raise interest rates again due to mounting second-round risks. Nagel spoke at the 79th Siemens Bankers Conference, noting that persistently high inflation and rising short-term inflation expectations increase the likelihood of a second round of policy adjustments.
Core inflation remains elevated, and the ECB's outlook has worsened since September. The ECB's primary mandate is to maintain price stability, keeping inflation around 2%, achieved through interest rate adjustments.
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