ECB’s Nagel: Eurozone inflation won't fall by itself, “resolute” action is needed

European Central Bank (ECB) Governing Council member and German central bank head Joachim Nagel said Friday, “Eurozone inflation won't fall by itself,” adding that "resolute" ECB action is needed

Further quotes

Bundesbank sees 2022 inflation at 7.1% in Germany vs 3.6% seen in Dec.

The latest inflation jump not fully reflected in projection update.

Current trends could push full-year inflation figure "considerably" above 7% in Germany.

Bundesbank sees 2023 inflation at 4.5% vs 2.2%; 2024 at 2.6% vs 2.2%.

Bundesbank cuts 2022 growth projection to 1.9% from 4.2%, sees GDP expanding by 2.4% in 2023.

Market reaction

As of writing, EUR/USD is holding onto the recent upside near 1.0635, up 0.20% on the day.