Bundesbank President Joachim Nagel warned ECB may need to raise interest rates due to the Iran war and high energy prices.
He cited expected rate hikes in June and September 2026, with markets also pricing a third move by year‑end.
Nagel said inflation could spread beyond fuel, noting supply shocks can affect all goods for up to 18 months.
He emphasized the ECB’s mandate for price stability, targeting a 2% inflation rate over the medium term.