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Market bets on further European Central Bank rate hikes are being driven largely by higher energy prices but policymakers will look at a much wider set of economic indicators when deciding their next moves, ECB Vice President Boris Vujcic told Reuters.
Europe's delay in restocking natural gas storage reserves, combined with near-record prices for diesel and other refined oil products, has added to the pressures on governments as they try to contain public discontent and the rise of the far-right.
Joachim Nagel, President of the Bundesbank and ECB Governing Council Member discusses the central bank's latest interest rate decision, his outlook for further rate hikes, and the political landscape in Germany.
The European Central Bank might need to raise interest rates further and bring them to a level that mildly curbs the economy if a war-fuelled rise in energy prices continues, ECB policymaker Joachim Nagel said on Friday.
European Central Bank policymakers expect further policy tightening in the months ahead to fight a war-fuelled rise in inflation and could move again as soon as October, two sources told Reuters.
Borrowing costs soar in Europe and oil tops $105 a barrel as bank flags mounting price pressures in eurozone
The European Central Bank increased interest rates for the second time since the Iran war started, responding to signs inflation is set to stay well above 2%. The deposit rate was lifted by a quarter-point to 2.5%.
Resurgent oil and gas prices have reignited concerns over price pressures.