The European Central Bank may hike interest rates at its next meeting in April if the price outlook continues to deteriorate due to the Iran war, with enough information available in the coming weeks, Governing Council member Joachim Nagel told Reuters. “It is certainly an option, but just one option,” the Bundesbank president in an interview published Thursday. “I think we’ll have enough data by ...
The European Central Bank may hike interest rates at its next meeting in April if the price outlook continues to deteriorate due to the Iran war, with enough information available in the coming weeks, Governing Council member Joachim Nagel told Reuters. “It is certainly an option, but just one option,” the Bundesbank president in an interview published Thursday. “I think we’ll have enough data by April to determine whether we need to take action or whether we can wait and see.” Nagel added that “this is certainly a situation in which every passing day contributes to an increase in inflationary risks, particularly with regard to what interests us most from a monetary policy perspective: how medium-term inflation expectations will evolve,” he said. “We shouldn’t shy away from it now just because we think it’s still too early.” Is comments chime with what Nagel told Bloomberg last week, when he argued that officials will need to consider raising borrowing costs as soon as next month if price pressures build further. President Christine Lagarde said Wednesday that the ECB will act decisively and swiftly if the current surge in energy costs risks a broader bout of inflation, though for now it’s still assessing the shock caused by the Middle East conflict. Read More: ECB Would Need April Hike If Price Outlook Sours, Nagel Says For full interview click here .