The European Central Bank may need to raise interest rates further and move policy into mildly restrictive territory if a war-driven surge in energy prices persists, ECB policymaker Joachim Nagel said on Friday, Reuters said.
The ECB raised borrowing costs for the second time this year on Thursday, taking its key interest rate to 2.50%. Policymakers are also preparing for further tightening in the coming months, with an October move possible, two sources told Reuters.
