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Central Banks

Nagel Backs Faster QT With More Big ECB Rate Hikes Possible

  • Underlying price pressures still very high, ECB official says
  • Bundesbank reports zero loss for 2022, taps €1b risk provision
Updated on

Bundesbank President Joachim Nagel said he supports a more rapid reversal of the European Central Bank’s bond-buying to help tackle inflation, with more large interest-rate increases also a possibility beyond a planned hike this month.

Nagel, a member of the ECB’s Governing Council, warned that underlying price pressures remain very elevated and that the inflation rate is only likely to retreat slowly — averaging between 6% and 7% in Germany this year.