KONTAN.CO.ID - FRANKFURT. The European Central Bank may still need to raise interest rates significantly beyond March as inflation, particularly underlying price growth, remains too high, Bundesbank President Joachim Nagel said on Friday. Although headline inflation is well below its peak, underlying price growth, a key indicator of the durability of inflation, rose to a record high 5.3% last month, raising the risk that price growth will get stuck above the ECB's 2% target. "It appears that core inflation will remain at very high levels beyond March and only decline slowly," Nagel told a news conference in the Indian city of Bengaluru on the sidelines of a G20 finance meeting.
ECB Could Still Need Big Rate Hike Beyond March, Nagel Says
KONTAN.CO.ID - FRANKFURT. The European Central Bank may still need to raise interest rates significantly beyond March as inflation, particularly underlying price growth, remains too high, Bundesbank President Joachim Nagel said on Friday. Although headline inflation is well below its peak, underlying price growth, a key indicator of the durability of inflation, rose to a record high 5.3% last month, raising the risk that price growth will get stuck above the ECB's 2% target. "It appears that core inflation will remain at very high levels beyond March and only decline slowly," Nagel told a news conference in the Indian city of Bengaluru on the sidelines of a G20 finance meeting.