German Central Bank President Joachim Nagel has warned that the country could slide into recession if the energy crisis worsens and urged the European Central Bank to keep raising interest rates. He explained: “If the energy crisis gets worse, next winter will likely lead to a recession.” “The German economy continues to perform well under difficult conditions in the first half of the year,” he added.

In an interview with the German newspaper Rheinische Post, he stressed that “Germany’s inflation rate could reach 10 percent in the autumn months”, noting that “more than 70 years ago, the country experienced double-digit inflation.”

As to his expectations for the next European Central Bank interest rate decision of September 8, Nagel indicated that “as a result of high inflation, further interest rate hikes should follow.”

Last July, the European Central Bank decided to raise key interest rates by 50 basis points to take “further important steps to ensure inflation returns to its 2 percent target over the medium term.”