ECB’s Nagel: Rate Hikes to Continue, Bringing Some ‘Tough Months’
19 December 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Tuesday said that the ECB would continue to hike interest rates and that this would involve some difficult months.
In an interview with German television news channel ntv, Nagel, who heads the German Bundesbank, said, ‘I really think that the central banks in the Eurosystem, the ECB, we have really acted strongly over the course of the year, with four rate hikes in the meanwhile, and the rate hikes will continue.’
Nagel said that it would take ‘some time’ before price stability is restored, meaning that ‘we will go through some tough months yet.’
Inflation rates would recede clearly only as of 2024, he said, pointing to the lag with which rate hikes unfold their impact. ‘Therefore, at this point I still have to ask for patience.’