The president of Bundesbank and member of the Governing Council of the European Central Bank (ECB), Joachim Nagelsaid in an interview with Der Spiegel on Friday that the ECB should raise interest rates in July, followed by more rate hikes in the second half of the year, Reuters reported.
“At our meeting in June we must send a clear signal of where we are going,” Nagel told the German newspaper. He added that “from my current perspective, we should make the first rate move in July with others to follow in the second half of the year.” Nagel warned that it may take some time for inflation to come down in the Eurozone.
Earlier this week, ECB President Christine Lagarde released new interest rate guidance on the central bank’s blog, where she indicated that Eurozone interest rates would return to positive territory by the end of the third quarter. Thus, Nagel’s views seem to be well aligned with Lagarde’s.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
