3/22, 7:34 AM (Source: TeleTrader)
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Nagel: Policymakers must be 'more stubborn' on inflation

Member of the European Central Bank (ECB) Governing Council and Bundesbank President Joachim Nagel told the Financial Times in an interview published on Wednesday that the rate-setters must be "more stubborn" if they want to rein in "stubborn inflation."

"There’s certainly no mistaking that price pressures are strong and broad-based across the economy ... Our fight against inflation is not over," Nagel emphasized. He stated that the ECB will only pause its interest rate increases when the inflation in the euro area falls "significantly and sustainably."

Although there is still "some way to go," the central bank is "approaching restrictive territory," he said. Once there is a halt in interest rate hikes, the ECB will then have to hold out against cutting the rates, Nagel concluded.

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