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MNI BRIEF: ECB To Hike In July, Again In 'Near Future' - Nagel

(MNI) London

The European Central Bank could end its asset purchase programme in June and begin raising rates in July, with further rate rises to follow “in the near future,” Bundesbank boss Joachim Nagel said in a speech Friday, saying central banks must act decisively to ensure that very strong inflation does not become entrenched [see MNI SOURCES1: ECB Seen Making Two To Three 25-BP Hikes In 2022].

Looking ahead, deglobalisation, decarbonisation and demographic changes could fuel further upwards price pressure, Nagel said. “The fact is that the dynamics of inflation have changed profoundly within a relatively short period of time. Accordingly, monetary policy has changed in most G7 countries. And monetary policy must remain vigilant and, if necessary, take further measures to ensure price stability in the medium term.”

MNI London Bureau | +44 20 3983 7894 |
MNI London Bureau | +44 20 3983 7894 |

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