Joachim Nagel, president of the Deutsche Bundesbank and a key voice on the ECB’s Governing Council, is pushing the central bank to stay sharp. His message is straightforward: energy prices remain unpredictable, inflation is still running hot, and the ECB needs to keep every tool on the table.
The rate hike and what comes next
The ECB raised its key deposit rate by 25 basis points to 2.25% in June 2026. That move came as a direct response to persistent energy supply disruptions linked to geopolitical tensions involving Iran.
Nagel described the upcoming July and September 2026 meetings as an “open race.” In English: nothing is predetermined, and the ECB is ready to hike again if the data warrants it.
Eurozone inflation is expected to remain significantly above the ECB’s target for the year. The energy shock that initially rattled markets hasn’t faded, and recent fluctuations in oil prices haven’t done enough to ease the pressure.
