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Nagel Sees Dec Rate Rise
Joachim Nagel, a member of the European Central Bank’s Governing Council and president of Germany’s Bundesbank, said a rate hike in December was likely if the inflation outlook continued to worsen, unless it improved markedly. Eurozone inflation is expected to reach 4%—twice the ECB’s target—while core inflation is forecast to hold at 2.5%. Nagel warned that higher energy prices could feed through to wages and then consumer prices. The ECB left rates unchanged last week, after raising them twice since the war with Iran began.
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