The comments from European Central Bank (ECB) policymaker and Bundesbank President Joachim Nagel released during Friday’s European session on Bloomberg signal that the central bank is committed to a chieve price stability.

Comments

ECB will take decisive action if needed to bring inflation back to target.

Consumer-price growth has picked up again.

Can’t be ruled out that prices will continue to rise in the coming weeks.

Higher energy costs being a major contributing factor.

Market reaction

No immediate reaction is seen in the Euro (EUR), following remarks from ECB’s Nagel. As of writing, EUR/USD is up 0.22% to near 1.1200.

Nagel flags renewed inflation risks, keeps ECB tightening threat alive

ECB’s Nagel delivers a stronger-than-usual warning on inflation, with an 8.2/10 FXS Speechtracker score notably above the 6.9/10 historic average, signaling a hawkish shift. The pledge that the ECB will take “decisive action if needed” to bring inflation back to target reinforces the perception that further tightening remains firmly on the table.

Nagel’s emphasis that consumer-price growth has picked up again and that it “can’t be ruled out” prices will continue to rise in the coming weeks underscores upside inflation risks. By highlighting higher energy costs as a major contributing factor, the speech supports a narrative of persistent price pressures, which is typically Euro-supportive as markets reassess the probability of additional ECB action.