- If bond buys end in Q3 as planned, rates could rise this year
- ECB should hike if the outlook requires it
- Low inflation environment unlikely to return
- Risk of second-round effects from high inflation is on the rise
Nagel is the Bundesbank leader and a hawk, so these comments aren't a surprise. If the ECB ever found itself behind the curve in an inflationary environment, it would absolutely wreck eurozone budget balances.
