Now: ECB Should Hike More

According to the President of the Bundesbank, Joachim Nagel, European Central Bank (ECB) must focus on keep rising the interest rate even at the cost of the Germany recession. This is because the current inflation rate so high and the possibility it remains for entire 2023 is likely.

The direst situation is the energy supply for the Germany this incoming winter. Germany will definitely suffer this winter if the crisis keeps going on as the possibility of Russia cutting the gas supply is pretty high. This situation will lead to higher inflation rate and thus the need for more strict monetary policy.