Tuesday, March 28

ECB could raise rates in 2022, new Bundesbank chief says

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FRANKFURT — The European Central Bank could raise interest rates this year as inflation is proving to be high for longer than thought, Bundesbank President Joachim Nagel said in a newspaper interview on Wednesday.

“If the (inflation) picture does not change by March, I will advocate normalizing monetary policy,” Nagel, who took charge of the Bundesbank in January, told Die Zeit. “The first step is to end net bond purchases during 2022. Then Interest rates could rise this year.” (Reporting by Balazs Koranyi; Editing by Andrew Heavens)