ECB considers April rate hike as inflation risks rise

Thursday 26 - 07:00

The European Central Bank (ECB) may consider raising interest rates as early as April if inflationary pressures intensify, according to Joachim Nagel, head of the Deutsche Bundesbank.

Speaking about the economic outlook, Nagel said that a rate increase at the next ECB meeting remains “an option,” particularly as rising energy prices linked to tensions in the Middle East continue to fuel inflation concerns across the euro zone.

The ECB is expected to assess new economic data ahead of its late-April meeting, which should provide clearer insight into the impact of geopolitical developments on growth and price stability. While markets are divided on the timing of a potential hike, some analysts believe action could come either in April or later in June.

Christine Lagarde, President of the European Central Bank, recently reaffirmed that the institution stands ready to act whenever necessary to maintain inflation close to its 2% target.