European Central Bank Governing Council member Joachim Nagel in an interview with the Zeitschrift für das gesamte Kreditwesen published on the Bundesbank website on Monday
- “Our monthly surveys of firms and households are showing a significant increase in long-term inflation expectations”
- “I firmly believe that we need to take further monetary policy action to halt and reverse this trend”
Nagel added that he was “optimistic that Germany will be able to avoid a severe economic slump"
- will get off lightly with a mild downturn
- confident that we will be able to tame the high rate of inflation over the medium term
And added a caveat:
- “There is a distinct risk of stronger second-round effects because the higher wage deals that are being reached could prolong the prevailing period of high inflation rates”
Nagel adding to numerous statements from ECBG pofficials that there are more rate rises ahead after the +250bp of hikes in 2022.
