ECB’s Nagel: We are keeping all our options open for July

European Central Bank (ECB) Governing Council Member and President of the Deutsche Bundesbank, Joachim Nagel, said on Friday that the interest rate hike yesterday was necessary as high energy prices are increasingly having an indirect effect on other prices.

Key quotes

Rate hike was necessary as high energy prices are increasingly having an indirect effect on other prices.

The supply shock triggered by the war in the Middle East is proving to be strong and persistent.

We are keeping all our options open for July and are ready to respond once again, should we have to.

Market reaction

At the time of writing, the EUR/USD pair is down 0.10% on the day to trade at 1.1566.