ECB's Nagel: First rate move should be in July, with more to follow in H2 2022
|Bundesbank President and European Central Bank (ECB) Governing Council member Joachim Nagel said in an interview with Der Spiegel on Friday that the ECB should raise interest rates in July, followed by more rate hikes in the second half of the year, Reuters reported.
"In our June meeting we must send a clear signal where we're going," Nagel told the German paper, adding that "from my current perspective, we must then make the first rates move in July and have others follow in the second half of the year". Nagel warned that it may take some time for inflation to fall in the Eurozone.
Earlier this week, ECB President Christine Lagarde outlined new interest rate guidance in a blog post, where she indicated taking Eurozone interest rates back into positive territory by the end of the third quarter. Thus Nagel's views seem to be well aligned with Lagarde's.
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