Nagel Signals ECB Rate Hike Next Week Amid Market Certainty

European Central Bank (ECB) Governing Council member Joachim Nagel has hinted that the ECB will raise borrowing costs next week. In an interview published on Wednesday, Nagel stated that markets are pricing in a probability of more than 95% that the ECB will increase interest rates at its September meeting.

This suggests that Nagel is confident about the upcoming decision, but cautious about what comes after it. He emphasized that the markets have a 'rather good understanding' of how the ECB will respond at this stage.