The ECB is ready to raise rates if inflation rises
ECB Governing Council member Joachim Nagel expressed support for the bank’s current strategy and noted readiness to raise rates if necessary. He emphasized that persistent inflation and ongoing geopolitical tensions require a cautious approach.
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European Central Bank Governing Council member Joachim Nagel on Monday expressed his support for the central bank's current monetary policy strategy, emphasizing that a cautious approach should not be seen as indecisiveness.
Speaking in Frankfurt, Nagel pointed out that the lack of significant improvement in price outlooks underscores the need for higher interest rates. He stressed that the ECB is prepared to take action at any time if the economic situation requires it.
The Bundesbank president noted that a prolonged military conflict could keep inflation elevated, which heightens concerns about the central bank's ability to control price pressures.
These statements come amid ongoing uncertainty regarding inflation trends and persistent geopolitical tensions, which continue to impact the eurozone economy.