European Central Bank Governing Council member Joachim Nagel has signaled that the central bank will raise interest rates at its upcoming meeting, though he remained cautious about the policy path beyond that.
"Markets are pricing in a probability of more than 95% that we will hike rates at the September meeting, and I believe markets have a fairly clear picture of what we might decide at this stage," Nagel said in an interview published by German newspaper Welt on Wednesday.
Nagel stopped short of committing to further action after the September move, saying "our approach of making decisions on a meeting-by-meeting basis has worked well in the past, and it will certainly continue to do so."
"As for what happens after the September meeting, I am cautious about offering any specific guidance," he added.
"Oil and gas prices remain volatile, and financial markets are experiencing significant turbulence, creating high levels of uncertainty. This situation is unsettling, including from a monetary policy perspective."
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