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Nagel in battle of wits over raising ECB interest rates
Joachim Nagel, Bundesbank president, has intensified a battle of wits at the European Central Bank about raising interest rates this summer in reaction to rising inflation which he said could be close to 7% in Germany for 2022. Speaking in Berlin at a DZ BANK-OMFIF financial conference on 11 May, Nagel played down the possible impact of interest rate ‘normalisation’ in July on the macroeconomy or on indebted peripheral euro members. Answering questions, he named as role models two past Bundesbank presidents, Otmar Emminger and Karl Otto Pöhl. In the 1970s and 1980s they both ran into political resistance because ... (full story)