President of the Bundesbank, joachim NagelAccording to the weekly “Der Spiegel”, it is estimated that a number of interest rate hikes will be approved in 2022 to counter the rise in prices.
“in our meeting” june We have to give a clear indication of where this journey leads. From my current point of view we have in July to take the first step in (interest) rates and more will follow in the second half of the year, ”says the president of the German central bank to the publication.
Nagel says he doesn’t expect a decrease inflation, which has reached 7.4% in both Germany and the EU as a whole: «Inflation will not fall overnight, it may take some time. It is important that long-term inflation expectations are well sustained.”
Even then, Nagel He is optimistic about the growth of the German economy and affirms that “it’s not so bad: before the war we expected a growth of more than 4% by 2022. Now it can stay in the middle. About 2% With the rise of, it’s not all bad.”
President of federal bank He does not believe in the inflation rate scenario (high inflation and economic stagnation) and believes that “the situation remains solid”.
Nor does Nagel believe in the danger that the situation in some European Union (EU) countries will worsen due to their high levels of debt and rising interest rates, as Italy, He says it is “true that Italy’s debt level rose again during the pandemic.”
Public finances of Italy, Germany or any other country should not be the measure of European monetary policy
“But the risk potential in state debt is not very high,” notes Nagel, for whom European Central Bank (ECB) should not intervene to pressure interest rates and help some countries by buying debt to ease new lending.
“The Public Finances of Italy, Germany or measures for European monetary policy from any other country”, omits Nagel, for whom “we should not participate in the monetary financing of the state”.
Bundesbank president predicts “several” rate hikes this year