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.
