ECB Governing Council member Nagel said on Friday that if current conditions persist the ECB will very likely need to raise rates again. He warned the longer inflation stays elevated the greater the risk of second‑round effects, and said the inflation outlook has worsened versus September projections as energy prices are well above prior forecasts and gas and power have accelerated in recent weeks. Core inflation remains high and near‑term inflation expectations have risen with headline inflatio

ECB Governing Council member Nagel said on Friday that if current conditions persist the ECB will very likely need to raise rates again. He warned the longer inflation stays elevated the greater the risk of second‑round effects, and said the inflation outlook has worsened versus September projections as energy prices are well above prior forecasts and gas and power have accelerated in recent weeks. Core inflation remains high and near‑term inflation expectations have risen with headline inflation. Nagel added the euro‑area economy shows some resilience and a repeat of 2022’s inflation dynamics is unlikely, provided the ECB fulfils its responsibilities.