ECB Governing Council member Nagel said the ECB will act decisively if necessary
to return inflation to its 2% target. Consumer price growth has accelerated
again and could continue to rise in the coming weeks, with higher energy costs a
key driver. Nagel said medium-term inflation expectations must remain firmly
anchored at 2%, and the Governing Council will monitor price developments
closely and act decisively when required. He added Thursday’s decision to hold
rates was “not easy,” but so far there are no clear second-round effects;
keeping that outcome depends on stable inflation expectations. He said this was
a key message of yesterday’s rate decision.
