ECB’s Nagel: Central bank should hike interest rates further to combat inflation

European Central Bank (ECB) policymaker and Germany’s central bank head Joachim Nagel said on Thursday, the central bank “should not refrain from further hike rates, we have to bring inflation down in the mid-term.”

Further comments    

Will not speculate when journey of higher interest rates in Eurozone will end, we are in a different situation to the US.

The ECB should not refrain from further rate hikes, we have to bring inflation down in the mid-term.

We mustn't refrain from hikes as political pressure mounts.

TPI isn't an instrument to finance certain countries.

Eurozone is in a much better position than after the financial crisis.

Market reaction

EUR/USD is holding the lower ground, as investors assess the ECB commentary amid a broadly stronger US dollar. The pair is trading 0.50% lower on the day at 0.9765, at the time of writing.