Energy Prices to Dictate European Rate Hikes, Bundesbank Chief Warns
German Bundesbank President Joachim Nagel has indicated that European Central Bank (ECB) rate hikes will heavily depend on energy price developments.
Nagel made this statement after the ECB raised its key interest rate by 25 basis points to 2.5% on Thursday, September 11, 2026.
The Bundesbank chief stated that rates are currently at the upper end of neutral territory but may need to enter 'mild restrictive territory.'