The president of the Bundesbank, the central bank of Germany, Joachim Nagel, said on Wednesday that in September it will be necessary for the European Central Bank (ECB) to raise interest rates sharplygiven the high inflation.
“We need a strong interest rate hike in September and in the coming months we have to count on more interest rate moves (increases),” Nagel said, noting that inflation is well above the 2% target. set by the ECB.
Eurozone inflation rose two tenths in August to a record 9.1%.
The Governing Council, to which Nagel belongs, has a meeting on September 8 to discuss the eurozone’s monetary policy and is expected to raise interest rates again.
In July, the ECB approved a 50-point hike based on its three key interest rates, the first increase in 11 years.
The president of the ECB considered that the ECB should not delay raising interest rates for fear of a recession.
Source: Observadora
