Global Market | ECB may need further rate hikes if energy prices stay high: Nagel
Economic Times 1 hr ago·11 Sept 2026, 10:47 am
European Central Bank (ECB) policymaker Joachim Nagel has suggested that the bank may need to raise interest rates further if energy prices remain high. This potential move would be aimed at keeping inflation in check, as high energy costs continue to push up overall price levels in the Eurozone. The ECB recently increased its key deposit rate to 2.50%, a significant step towards tightening monetary policy.
For investors, this signals that the ECB is not done tightening its grip on the economy. Higher interest rates generally cool down inflation but can also slow economic growth. The central bank's future decisions will closely depend on how energy prices evolve and whether inflation trends are easing. Investors should monitor upcoming inflation data and ECB statements to gauge the likelihood of further rate hikes.
Key takeaways
- Category: Economy.
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