Message from Bundesbank President Nagel Regarding ECB's Fight Against Inflation

Bundesbank President Joachim Nagel announced that the European Central Bank (ECB) is closely monitoring price developments in the face of rising inflation driven by increasing energy costs and will take decisive action if necessary.

In an interview with Bloomberg, Nagel stated that the increase in consumer prices is gaining momentum and that the rise in energy costs could continue to put pressure on prices in the coming weeks. Reaffirming the ECB's commitment to its 2% inflation target, Nagel noted that the Governing Council is closely monitoring developments.

These statements came a day after the ECB's decision to keep borrowing costs unchanged. With conflicts in Iran pushing energy prices higher, it is noted that officials are prepared to return to tightening policies in December if there is no improvement in the inflation outlook.