ECB’s Nagel Says December Rate Hike Very Likely Necessary as Inflation Outlook Worsens
| Pair | Now | Since publish |
|---|---|---|
| EURUSD | — | — |
- Nagel says December ECB rate hike very likely necessary
- September inflation pressures higher than expected; energy costs a key driver
- No immediate EUR reaction reported after the comments
ECB Governing Council member and Bundesbank President Joachim Nagel said a December rate hike is very likely to be necessary, pointing to a worsening inflation outlook. In remarks reported on Friday during the European session, he said consumer-price growth has picked up again and that further price rises in the coming weeks cannot be ruled out. He named higher energy costs as a major contributing factor.
Nagel said inflationary pressures were higher than expected in September and that the bank is approaching an adverse scenario. He added that the ECB can and must prevent an energy price spike from causing broad-based inflation, and that it will act decisively if needed to bring inflation back to target.
FXStreet noted no immediate reaction in the euro to the comments. The remarks follow the ECB’s decision on Oct 29 to hold the deposit rate at 2.50%, after which sources pointed to a possible December hike [STORY_ID: 424a12c7-ae64-46a1-b642-6811679a7690].