Joachim Nagel, Germany’s central bank governor and ECB member, shared his latest thoughts on inflation and the prospect of a rate hike in the eurozone.
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The ECB will soon raise rates for the first time in more than a decade, a member of the central bank’s governing council told CNBC on Friday.
The ECB is in the spotlight for its less aggressive position in monetary policy than other central banks. However, amid continued rise in inflation, expectations of rate hikes have risen in recent months, with market players now pointing to at least four rate hikes before the end of the year.
“We are on the right track,” Joachim Nagel, president of the German Bundesbank and one of the ECB’s hockey members, told CNBC’s Annette Weissbach.
“At our crucial meeting in March we decided to end our net asset purchases and at the June meeting, depending on the data, we may decide to close – and I’m saying this because the data here speaks a very believable language – that we are making our purchases. Stop and then I believe we will see the first rate increase soon, ”he said.
His remarks indicate that the first interest rate hike could come in July, once the ECB debated the new economic forecast released the previous month.
Nagel, who has been in office since January, said he has been warning of high inflation since taking office and is now looking at further acceleration in raising interest rates.
“I am very grateful that so many members of the Governing Body are joining me now,” he said.