The central bank for the euro zone raised interest rates by half a percentage point last week and pencilled in a move of the same magnitude for next month. But it kept options open for its following meeting in May, with sources telling Reuters they expected a 25- or 50- basis-point increase then. (Reporting By Francesco Canepa; Editing by Christina Fincher)
Messaging: francesco.canepa.thomsonreuters.com@reuters.net)) FRANKFURT, Feb 9 (Reuters) - The European Central Bank
must act decisively to prevent inflation expectations from
rising far above its 2% target, ECB policymaker Joachim Nagel
said on Thursday, reaffirming his call for more interest rate
increases.
"Decisive monetary policy action is necessary to reduce the
risk of an unanchoring of long-term inflation expectations,"
Nagel, the Bundesbank's president, said in a slide accompanying
a speech.
Economists' and investors' expectations for inflation in the
euro area from 2025 onwards are at or just above 2% but the ECB
has said it will monitor the situation in case there is any
further rise.
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