Joachim Nagel signals potential further tightening as energy-driven inflation pressures persist across the Eurozone.
The European Central Bank left the door open for another interest rate increase in July, citing persistent inflationary pressures from high energy costs. Governing Council member Joachim Nagel stated the recent hike was necessary as energy price shocks increasingly feed into broader price trends.
The ECB raised rates yesterday for the first time since September, responding to inflation that remains above its 2% target. Nagel highlighted the Middle East conflict as a key driver of sustained supply disruptions, warning of prolonged inflation risks.
EUR/USD traded 0.10% lower at 1.1566 following the comments, reflecting market uncertainty over the ECB’s next move.