Central Banks

ECB’s Nagel Urges ‘Robust’ December Hike and QT in Early 2023

  • Premature to settle on size of next rate increase, he says
  • Bundesbank chief sees fresh data, forecasts key to decision

Joachim Nagel

Photographer: Alex Kraus/Bloomberg
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The European Central Bank will deliver another “robust” interest-rate increase next month, though it’s premature to settle on its size just yet, according to Bundesbank President Joachim Nagel.

Inflation data due before the Governing Council’s Dec. 14-15 meeting and new economic projections through 2025 will be key to determining whether a third straight 75 basis-point hike is needed to tackle record inflation, or whether a half-point step is sufficient, Nagel told journalists in Frankfurt.