ECB likely to raise rates in December, says Nagel

The European Central Bank will probably raise interest rates in December due to worsening inflation, Governing Council member Joachim Nagel said in a speech in Berlin.

The Bundesbank President said the baseline projection for consumer prices presented in September already assumed another rate increase, and the situation has deteriorated since then.

Nagel said repeated spikes in energy costs raise the risk of spreading to other prices. The ECB will have fresh economic forecasts through 2029 when officials meet next month.

“We will base our decision on these projections,” Nagel said. “From today’s perspective, however, there is likely no way around an interest-rate hike unless the inflation outlook improves significantly.”

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