ECB’s Nagel: As long as Hormuz is not resolved, the danger of higher inflation rises

Joachim Nagel, President of the Bundesbank and member of the European Central Bank (ECB) spoke in an interview with Bloomberg on Wednesday. He said that questions about the Strait of Hormuz are essential, as we're between the baseline and an adverse scenario.

Key takeaways:

There is not enough clarity about what happens in April, we need all optionality.

Question about Strait of Hormuz is essential, two weeks can bring a lot of new information.

Situation developed a little bit better over course of last week.

Inflation expectations well anchored but this could still change.

We're in between baseline and adverse scenario.

As long as situation around Hormuz is not resolved, the danger of higher inflation is rising.”