ECB May Need Restrictive Policy Says Nagel
European Central Bank policymaker Joachim Nagel stated the bank might need to raise rates into restrictive territory. This depends on whether war-driven energy price increases continue over coming months.
The European Central Bank may need to push interest rates into restrictive territory to curb the economy if energy prices climb further, Governing Council member Joachim Nagel said on Friday morning. The remarks follow the ECB's second rate hike of the year on Thursday, which brought its key rate to 2.50%. Further policy tightening could arrive as early as October, people familiar with the matter said.
