MNI BRIEF: German Wage Surge In 2nd Half 2022 - Buba's Nagel

German wage negotiations in the second half of this year are likely to see "high numbers," Bundesbank president Joachim Nagel said during a panel event Monday, adding that the moderation of the last 10 years was likely over.

Calls for higher wages in negotiations have been one absent from the pick up in prices over the last 12 months, with many policymakers pointing to wage growth well within forecast levels. However, any sharp increase could be a challenge as the ECB looks to normalise monetary policy in the coming months (MNI SOURCES1: ECB Seen Making Two To Three 25-BP Hikes In 2022).

Nagel also appeared to aligh himself with earlier comments from ECB President Christine Lagarde, who suggested that APP would end "very early" in Q3, with a first rate hike in July and the deposit rate exiting negative territory before the end of Q3.