By Hans Bentzien
FRANKFURT (Dow Jones) — The European Central Bank (ECB) will have to raise interest rates again at the next Council meeting, according to ECB Director Isabel Schnabel. Speaking at the opening of an ECB conference, she said: “Based on our current assessment, we expect the Governing Council to continue raising interest rates at its forthcoming meetings to ensure the timely return of inflation to our medium-term target of 2% .”
Inflation was last at 9.1 percent and a further increase cannot be ruled out in the short term. According to Schnabel, an analysis of the pricing behavior of firms in the euro area suggests that the higher inflation is high, the more frequently they raise prices. “A historically high proportion of them expect price increases in the next few months,” she said.
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DJG/hab/kla
(END) Dow Jones Newswires
September 12, 2022 09:11 ET (13:11 GMT)