ECB signals potential April rate hike if inflation pressures worsen. Bundesbank President Joachim Nagel warned that rising price pressures from Middle East tensions could force the central bank to adopt a more restrictive monetary policy stance sooner than expected. The ECB kept rates unchanged Thursday but officials are prepared to raise borrowing costs on April 30 if geopolitical fallout pushes inflation significantly above target. New projections show eurozone consumer prices advancing 2.6% this year, well above previous forecasts. In an extreme scenario with prolonged energy supply disruptions, inflation could peak at 6.3% in early 2027. The alarm reflects soaring energy prices threatening to drive inflation higher while simultaneously dragging down economic growth across the eurozone.
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