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ECB’s Nagel Says More Rate Hikes May Be on Way If Data Warrant
The European Central Bank is prepared to raise interest rates further if inflation proves more stubborn than thought, Governing Council member Joachim Nagel told Central Banking in an interview. “We have done a lot by implementing 10 hikes so far,” he was quoted as saying. “Maybe more will be on the way if the data indicate that further action is warranted.” Inflation is slowing in most parts of the 20-nation euro zone but is only seen returning to the ECB’s 2% target in the second half of 2025. Any delay to that scenario will likely embolden policy hawks such as Nagel to push for additional rate increases. ... (full story)