Bundesbank President, and therefore a member of the European Central Bank Governing Council, Joachim Nagel spoke from Frankfurt over the weekend.
- “If the data trend continues, more interest-rate increases have to follow -- that’s already agreed in the Governing Council”
- “We have to be determined, in October and beyond”
Even if the economy suffers:
- “We must bring inflation back under control, we mustn’t let up, even if the economy worsens.”
Nagel acknowledged the slowing European economy, saying that momentum will be likely to slow in Q3 and Q4, he does not expect a sharp slump.
