The European Central Bank’s historic series of interest rate rises are not finished yet.
That’s according to Governing Council member Joachim Nagel.
Speaking in Frankfurt this week, the German Central Bank Head said while decisions beyond a planned hike this month remain data-dependent, “the way I see it, we still have some way to go.
“Upside risks to the price outlook dominate,” he added.
“Looking at the forecast, higher rather than lower inflation rates are to be expected. For example, stronger-than-expected wage increases or profit margins could cause inflation to accelerate over the medium term.”
With another interest increase on July 27th all but assured, ECB officials are trying to determine how far borrowing costs must rise to get inflation under control.
The ECB has raised interest rates by on eight consecutive occasions since last July to a 22-year high of 3.5%, leading to mortgage repayments increasing for those on variable or tracker mortgages.
