09/02/2022 (Agence Europe) – In an interview with the daily newspaper Die Zeit on Wednesday 9 February, the new governor of the Bundesbank, Joachim Nagel, called for the key rates of the European Central Bank (ECB) to be raised “before this year is over” if the current inflation trajectory has not altered by March. “The economic costs would be significantly higher if we act too late instead of taking timely action. If we act later, we would have to raise rates further and faster. This would increase volatility in financial markets”, he added. On Thursday 10 March, the ECB Governing Council will give further indications on the monetary policy that the Frankfurt-based institution will pursue once the massive ‘PEPP’ operation to buy back predominantly government securities is complete (see EUROPE 12883/17). (MB)