ECB’s Nagel: Core Inflation ‘Far Too High’, Monetary Policy’s Job ‘Not Done Yet’
24 January 2023
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Tuesday suggested that high core inflation meant the ECB had to continue hiking interest rates.
In an interview with French weekly news magazine l’Express conducted jointly with Banque de France Governor François Villeroy de Galhau, Nagel, who heads the German Bundesbank, said that he and Villeroy ‘completely share the view that we have to fight inflation resolutely.’
December’s 5.2% core inflation rate in the euro area was ‘far too high’, Nagel declared. ‘We have to continue tightening monetary policy to dampen price pressures and keep inflation expectations anchored at our inflation target.’
Elevated inflation was a ‘heavy strain’ on the economy, he said. ‘We need to rein in inflation. Our job is not done yet.’