Eurozone Inflation ‘Will Become Weaker, but It Is Not Yet Defeated’, ECB's Nagel Says

28 July 2023

By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel said on Friday that the fight against high inflation was not yet over in the Eurozone.

In comments emailed to journalists, Nagel, who heads the German Bundesbank, said: ‘We expect that the high inflation in the euro area will become weaker, but it is not yet defeated.’

Core inflation was ‘stubborn’, meaning that the ECB’s monetary policy needed ‘to be even more stubborn’, he said.

‘We need staying power’, he said. ‘We need interest rates to be high enough and we need to keep them there for as long as necessary.’

‘Whether we need to raise interest rates further will be decided in September based on the data and projections available at that time’, he added.