Bundesbank announces further rate hikes

06/05/2023, 16:01

Bochum. The Bundesbank has announced further rate hikes. In order to get the high inflation behind you, you need “a sufficiently high interest rate level,” said Bundesbank boss Joachim Nagel on Monday in Bochum at the Institute for Credit and Finance (IKF).

“From today’s perspective, several rate hikes are still necessary,” said Nagel. For him, it is also not certain that the interest rate peak will already be reached in the summer. “If interest rates are high enough to overcome high inflation, then we have to keep interest rates at this level until it is beyond doubt that we will reach our target of two percent inflation in the near future,” Nagel continued. At the same time, interest rate policy must be supported by reducing bond holdings.

“From July we want to increase the rate of dismantling – I very much welcome that,” said Nagel. “These measures will help us leave the inflationary wave behind us and return to a stable framework,” said the Bundesbank President. Nagel sits on the ECB Council, which decides on the interest rate level in the euro zone.

more news from the region