Nagel Keeps Further ECB Rate Hikes on the Table
The Bundesbank chief said persistent core inflation could prompt another rate increase, while markets priced in a December deposit-rate hike.
Key takeaways
- Nagel said persistent core inflation could lead the ECB to raise rates again.
- Money markets priced in a 25-basis-point deposit-rate increase at the ECB’s December meeting.
Bundesbank President Joachim Nagel said the ECB could raise interest rates again if core inflation remains persistent, keeping further tightening on the table.
Speaking to reporters in Bangkok during the IMF’s annual meetings, Nagel said the ECB Governing Council had not exhausted its options. He also said upward risks to price stability remained despite delays in monetary policy’s effects.
The ECB has raised rates twice in the current phase, Nagel said. Money markets are pricing in a 25-basis-point increase in the deposit rate at the December meeting.
Ekonomim said Nagel’s remarks reinforced hawkish market expectations and supported higher short-term bond yields.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
