- Latest data shows core inflation is still too high
- ECB must be determined in tightening policy
- Headline inflation could possibly have reached plateau but it is too early to say
My take is that the key word in the headline remark is significant, which points to the potential for the ECB to keep hiking by 50 bps moving forward. That said, Nagel is an outright hawk so this sort of commentary isn't anything that stands out too much. For now, a 50 bps move next month is a given but I would say markets are still torn about what comes next.
