ECB May Hike Rates Again to Tame Inflation

European Central Bank (ECB) Governing Council member Joachim Nagel has signaled that the bank may need to raise borrowing costs to curb inflation. Speaking on CNBC, Nagel emphasized that energy-price developments will be a key factor in shaping monetary policy.

The ECB recently raised interest rates for the second time since the Iran war sent oil and natural gas prices surging. This move was made a day before Nagel's comments to CNBC. He stated that borrowing costs may need to increase further to control inflation, potentially even reaching levels that would curtail economic activity.

Nagel's statement implies that the ECB is considering more aggressive monetary policy measures to combat inflation. However, he did not provide specific details on what this might entail or when such a move could be taken.