Joachim Nagel, the new president of the Bundesbank, warned that inflation could last longer than currently expected, and he urged the ECB to remain vigilant.
Nagel acknowledged that the current pressures are partly to blame for temporary factors, but he also called the medium-term outlook “very uncertain. He vowed to follow in the footsteps of former President Weidmann and make himself one of the ECB’s most conservative officials.
Institutional analysis suggests that Negel’s entry into the Monetary Policy Committee will not have a significant impact on the ECB’s monetary policy. As a continuous candidate, the balance of power between hawks and doves is unlikely to change.