ECB Rate Hikes Increasingly Likely, Nagel Tells Handelsblatt

The probability that the European Central Bank will need to raise borrowing costs due to the Iran war is rising, according to Bundesbank President Joachim Nagel.

“I still hold out some hope for a significant easing of tensions in the Middle East — but we can’t ignore the high energy prices,” the German central banker told Handelsblatt in an interview. “Interest-rate hikes are becoming increasingly likely unless the inflation picture changes fundamentally.”