There was a turnaround in interest rates in July, and the ECB recently raised the key interest rate by 0.75 points. The monetary watchdogs will meet again in October - and Bundesbank boss Nagel expects interest rates to continue to rise. Because inflation is also pointing upwards, he says.
According to Bundesbank President Joachim Nagel, the ECB will continue to raise interest rates beyond October in the fight against escalating inflation. "The outlook is such that the inflation rates, as they look from today's perspective, point even further upwards," said Nagel in Frankfurt at the Bundesbank's open day.
The monetary authorities would therefore have to remain stubborn at the October meeting and afterwards until the end of the year. Interest rates continued to rise. "Not just in October," he added. However, the currency watchdogs always made possible interest rate increases dependent on the current data situation.
The next interest rate meeting of the European Central Bank (ECB) is scheduled for October 27th, with the last interest rate meeting this year on December 15th. In the fight against escalating inflation, the ECB initiated the turnaround in interest rates in July and raised the key rates for the first time since 2011.
With its second interest rate move on Thursday a week ago, the ECB followed suit, and in fact unusually strongly. The increase of 0.75 percentage points was the largest interest rate increase since the introduction of euro cash in 2002. The key interest rate is now 1.25 percent and the so-called deposit rate is 0.75 percent.
The inflation rate jumped to a new record high of 9.1 percent in August. It is more than four times higher than the ECB's inflation target of two percent. "We in monetary policy must also remain persistent," said Nagel at the event. Under the motto "Backstage Bundesbank", the central bank provided information on its work on Saturday and Sunday at its headquarters in Hesse. The Bundesbank had around 2,800 visitors on Saturday.
