Central Banks

ECB Still Has a Long Way to Go on Rates, Two Policymakers Say

  • ‘Inflation is persistent,’ ECB must be even more stubborn
  • German, Spanish central bank chiefs comment in FAZ interview

The European Central Bank headquarters in Frankfurt, Germany. 

Photographer: Alex Kraus/Bloomberg
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The European Central Bank will have to continue raising borrowing costs to fight record inflation, according to two of its top policymakers.

“I am convinced that this is not the end of the rate hikes -- we still have a long way to go,” Bundesbank President Joachim Nagel told Frankfurter Allgemeine Zeitung in a joint interviewBloomberg Terminal with Spain’s central bank Governor Pablo Hernandez de Cos. “Inflation is persistent. If we want to overcome it, monetary policy will have to be even tougher.”