More interest rate hikes in the euro zone after the one already expected at the end of October will be “necessary” to fight runaway inflation, the Bundesbank president said on Saturday.
“In my view, further interest rate increases will be needed to bring inflation back to (target) 2% in the medium term, and not just at the monetary policy meeting at the end of October,” Joachim said. Nagel according to the text of a speech delivered in Washington and released by the Bundesbank in Germany.
“In any case, the ECB Governing Council should not relax too soon” its monetary tightening, he said. “Because we have to make sure that high inflation stops,” he insisted. The rate reached 10% in September in the euro zone.
A further increase of 0.75 points is expected at the end of October
The ECB began in July to tighten its rates abruptly, faithful to its main mission, which is to guarantee price stability. He believes that the ongoing economic slowdown in the euro zone amid the energy crisis linked to the war in Ukraine will not be able to curb inflation sufficiently.
The next meeting of the institution’s board of directors, scheduled for October 27, could lead to a new rise of 0.75 points in reference rates, as in September, according to statements by bankers and observers from the eurozone.
Source: BFM TV
