ECB's Nagel: Restrictive Rates Possible if Energy Prices Persist

Bundesbank chief and ECB Governing Council member Joachim Nagel signaled that the ECB may need to raise rates to a growth-dampening level if high energy prices persist. This marks a hawkish tilt from a key policymaker, suggesting potential further tightening beyond current expectations. The statement introduces upside risk to euro-area rate expectations, which could pressure growth and support the euro.