ECB's Nagel: Monetary policy must be on guard over high inflation
|European Central Bank Governing Council member and Bundesbank President Joachim Nagel said on Wednesday that the ECB's monetary policy must be on guard over high inflation, as reported by Reuters.
Additional takeaways
"If price stability requires it, ECB must adjust its monetary policy course."
"German inflation could average 5% this year, well above previous forecasts."
"Eurozone inflation also likely to be record high."
"Impossible to estimate the economic impact of war in Ukraine."
"Will not transfer any profits to the federal budget, will boost provisions by 1.3 billion euros."
"Likely to increase provisions further in 2022."
Market reaction
EUR/USD stays on the back foot after these comments and was last seen losing 0.4% on the day at 1.1083.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.