Bundesbank head, and thus a key member of the European Central Bank Governing Council, Joakim Nagel spoke over the weekend with a German newspaper, Rheinischen Post.
Key points he made:
- “The probability is rising that inflation will be higher than previously forecast and will average six point something next year”
- inflation could exceed 10% in the coming months
- ECB must thus keep raising interest rates ... “With the high inflation rates, further interest rate hikes must follow”
- the German economy is “likely” to suffer a recession over the winter if the energy crisis (specifically Russia cutting gas supply) continues to deepen
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Earlier:
