ECBs Nagel: Considers further rate hikes as inflation risk persist

<ul><li>The ECB is not yet satisfied with the recent developments in inflation.</li><li>Further rate hikes remain a possibility as inflation risks are still on the upside.</li><li>Longer-term inflation expectations continue to be significantly above the 2% target.</li><li>Advocacy for a reduction in the ECB's balance sheet, which could be accelerated.</li><li>It is currently too early to consider rate cuts.</li></ul><p>Meanwhile, the euro zone CPI data today was weaker than expected.</p><ul><li>Flash CPI 2.4% versus 2.7% expected and 2.9% last month</li><li>Core flash CPI 3.6% versus 3.9% expected and 4.2% last month</li></ul><p>Yes inflation remains above target but progress is being made to the downside</p>

This article was written by Greg Michalowski at www.forexlive.com.