Bundesbank President Joachim Nagel Signaled That the European Central Bank Is Almost Certain to Raise Interest Rates

In an interview with French newspaper Le Monde, the German central banker noted that "markets are pricing in a 95% probability of a rate hike, and I would say they have a good understanding of how we will probably respond" to the current situation. Looking beyond September, Nagel said there is great uncertainty. His comments come as the ECB weighs its next policy steps amid a volatile economic environment shaped by fluctuating commodity prices and increasing bond yields. The interview underscores the delicate balance the central bank faces between curbing inflation and supporting economic growth.