The European Central Bank hiked its key interest rate by 25 basis points to 2.5%. Germany’s Bundesbank chief Joachim Nagel said further rate hikes depend on how energy prices evolve. Oil prices remain elevated with Brent crude and WTI both trading above $100 per barrel, approaching $110. European gas prices are also under pressure with Dutch TTF futures hitting their highest level since 2022. Nagel said rates are currently at the upper end of neutral territory but the ECB cannot rule out entering mild restrictive territory.
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