ECB rate hikes my need to last beyond summer break: Nagel
2023.06.16 03:59
© Reuters. Joachim Nagel, President of Germany’s federal reserve Bundesbank addresses the media during the bank’s annual news conference in Frankfurt, Germany March 1, 2023. REUTERS/Kai Pfaffenbach/FILE PHOTO
FRANKFURT (Reuters) – European Central Bank rate hikes may need to last beyond the summer break, Bundesbank President Joachim Nagel said on Friday, after the ECB raised rates to a 22-year high of 3.5% on Thursday.
“We still have more ground to cover,” he said in a speech after the ECB flagged a July rate hike but made no commitment for subsequent moves. “We may need to keep raising rates after the summer break.”
He added: “Once we have reached the peak, we will stay there until we are sure of a safe and timely return of inflation to our 2% target.”
