In a Die Zeit interview, new Bundesbank President Joachim Nagel said, “if the (inflation) picture does not change by March, I will advocate normalizing monetary policy.” “The first step is to end net bond purchases during 2022,” he said. “Then interest rates could rise this year.”
Nagel also expects inflation in Germany to rise “significantly” above 4% in 2022. He warned that the economic costs of acting too late on inflation are significantly higher than acting early.
