MNI BRIEF: Process Of Higher Rates Must Continue- Buba's Nagel

The European Central Bank must do everything it can to stop higher inflation becoming entrenched, Bundesbank head Joachim Nagel said in an interview with Handelsblatt published on the German central bank's website Monday.

"The era of negative interest rates is over," Nagel said. "Ensuring price stability in the medium term is key. Monetary policy normalisation – and thus also the process of raising interest rates – must continue. The steps we take and the extent to which we raise interest rates will be driven by the data," he added.

Nagel also discussed the news ant-fragmentation tool particularly the likelihood of a legal challenge, but said the "Governing Council of the ECB placed particular emphasis on taking account of legal requirements and constraints. I am therefore confident that it would be upheld by the courts in the event of any legal proceedings."