Nagel: If the current situation continues, the ECB will likely need to raise interest rates again.

European Central Bank Governing Council member Nagel stated that if the current situation persists, the ECB will likely need to raise interest rates again. The longer inflation remains high, the greater the risk of a second-order effect. The inflation outlook has deteriorated compared to the September forecast, with energy prices significantly higher than expected, and natural gas and electricity prices accelerating in recent weeks. Core inflation remains high, and short-term inflation expectations are rising along with overall inflation. The European economy is currently showing some resilience, and the likelihood of a repeat of the inflationary situation in 2022 is low, provided that the European Central Bank fulfills its responsibilities. (Source: Jinshi Data)