MNI BRIEF: Upside EA Infl Risks Demand Buba Continuity - Nagel

Euro area inflation inflation risks remain tilted to upside despite extraordinary levels uncertainty, new Bundesbank president Joachim Nagel said Tuesday in his first public address, as he reaffirmed the central bank’s commitment to tightening policy if necessary while highlighting the social costs of rising prices.

“It is true that prices could also rise less than is estimated in the forecasts,” Nagel said. “However, I currently see a greater risk that the inflation rate could remain high for longer than currently expected."

“One thing is very clear,” he said. “If price stability requires it, the Governing Council must act and adjust its monetary policy stance,” he added.