The head of the German central bank on Saturday believed that further hikes in interest rates in the euro area after those expected for the end of October will be “necessary” to counter the rise in inflation.
“In my opinion, further interest rate hikes will be needed to bring inflation back (to a target) of 2% over the medium term, and not just 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 Governing Council of the ECB shouldn’t ease its monetary tightening too soon,” he added.
He continued: “Because we need to make sure that high inflation stops.”
The interest rate was 10% in September in the euro zone.
In July, the European Central Bank began surprisingly tightening interest rates as part of its core mission of ensuring price stability.
He believes that the economic slowdown in the euro area in the context of the energy crisis linked to the war in Ukraine will not be able to curb inflation sufficiently.
