ECB Warns of Possible Interest Rate Hike Amid Energy Price Surge

Bundesbank President Joachim Nagel warned that the European Central Bank (ECB) may need to raise interest rates high enough to slow down economic activity if energy prices continue to surge.

Nagel, a member of the ECB's Governing Council, stated that while the central bank has already increased its key rate to 2.50%, further action may still be required.

The current tightening cycle may not be finished as officials expect additional tightening in the months ahead, with a possible move as early as October or December.