The head of the German Central Bank considered, Saturday, that additional increases in interest rates in the euro area will be “necessary” following those expected at the end of October, to counteract the rise in inflation.
“In my opinion, additional interest rate hikes will be necessary in order to return inflation (to a target) of 2% in the medium term, and not only at the monetary policy meeting at the end of October,” said Joachim Nagel, according to the text of a speech delivered in Washington and published by the Bundesbank in Germany.
“In any case, the ECB Governing Council should not ease too soon” its monetary tightening, he added.
He continued, “Because we have to make sure that high inflation stops.”
The interest rate was 10% in September in the eurozone.
In July, the European Central Bank began to abruptly tighten interest rates as part of its primary mission of ensuring price stability.
He considered that the slowdown of the economy in the euro area in the context of the energy crisis related to the war in Ukraine will not be able to curb inflation sufficiently.
