ECB's Nagel: ECB should raise interest rates if price outlooks requires, could raise rates this year

ECB Governing Council member and Bundesbank President Joachim Nagel said on Monday that the ECB should raise interest rates if the price outlook required it and, if bond-buying ends in Q3 as now planned, rates could rise this year, reported Reuters. Nagel said the risks of tightening policy too late have increased and any delay could require sharper rate rises at a later date. A low inflation environment is unlikely to return, he continued, saying that the risks of second-round effects from the current high inflation are on the rise. The war in Ukraine is to weigh on Eurozone economic growth via lower consumption, confidence and trade, he concluded.