Central Banks
Nagel Says ECB Must Withdraw Support Quickly, Not Stop Too Early
- Inflation is ‘alarmingly high,’ Bundesbank president says
- ECB is expected to hike rates by 75 basis points next week
Joachim Nagel
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank must continue to rapidly roll back monetary support and not halt interest-rate increases too early, according to Governing Council member Joachim Nagel.
With inflation “alarmingly high” and policy still accommodative, officials “have to withdraw that stimulus quickly,” the Bundesbank president told an audience of Harvard University students on Monday. If necessary, borrowing costs will have to move “into restrictive territory.”