Joachim Nagel, an official of the European Central Bank (ECB), stated that although the institution recently kept interest rates unchanged, the possibility of a new tightening of monetary policy is being analyzed to combat the effects of inflation, which has reached approximately 3% in the euro area. This increase is influenced by oil prices, which exceed 110 dollars per barrel, in the context of the conflict with Iran and the blockades in the Strait of Hormuz.
Joachim Nagel warned that although the bank cannot directly control energy costs, it is essential to intervene if inflation becomes persistent, due to wage increases and price adjustments. He emphasized that the risk of persistent inflation increases as the conflict prolongs. Several members of the Governing Council have signaled possible interest rate hikes in June, and financial markets anticipate up to three increases by the end of the year. However, Nagel mentioned that the current situation is less severe than in 2022, when inflation reached double-digit levels.
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