ECB could raise interest rates this year because of inflation, says new Bundesbank boss

The ECB last week walked back on a pledge not to raise rates in 2022 but has also attempted to temper expectations after markets quickly priced in two moves that would bring its deposit rate back to zero in December.

The European Central Bank (ECB) could raise interest rates this year as high inflation is proving more persistent than once thought, Bundesbank President Joachim Nagel told German newspaper Die Zeit.

The ECB last week walked back on a pledge not to raise rates in 2022 but has also attempted to temper expectations after markets quickly priced in two moves that would bring its deposit rate back to zero in December.