ECB's Nagel: Rates could rise in 2022 after ending bond purchases

In an interview with Die Zeit newspaper, European Central Bank's Governing Council and Bundesbank President Joachim Nagel said that he would advocate normalizing monetary policy if the inflation picture doesn't change by March, as reported by Reuters.

Additional takeaways

"Expecting German inflation to rise significantly above 4% in 2022."

"The economic costs of acting too late are significantly higher than acting early."

"First step would be to end bond purchases, then rates could already rise in 2022."

"Would support stronger rules for government debt in Europe, with fewer exemptions."

Market reaction

EUR/USD edged slightly higher on these comments and was last seen rising 0.15% on the day at 1.1432.