Joachim Nagel

Perhaps a more dovish president of the ECB might look to scale back some of the ambitious changes to its operational framework, which involve reducing the balance sheet removing government bonds from its structural portfolio, and something which perhaps has put a little bit of pressure on government debt, especially in places like France.

Whereas if a more hawkish representative of Northern Europe, perhaps the current Bundesbank president Joachim Nagel, comes in, well, then it's possible those initiatives are accelerated and markets might lock to price in a more hawkish rate path for the ECB as well.

So Felix, last question to you then on R-Star, the long run equilibrium or neutral rate of interest, which is a theoretical concept where we think that venture policy would be neither tight nor restrictive and where we think it might settle in the long run.

Now, John, I note that in later's Fed press conference, Kevin Walsh was really playing down the operational usefulness of the concept of R-Star.

The European Central Bank delivering a quarter point hike as surging energy prices drive up the inflation outlook.

We're going to hear from the Bundesbank president, Joachim Nagel.

That is live this hour.

Good morning, everyone, and nice to see you.

The longer energy prices stay high, the more likely they are to drive up broader inflation through indirect and second-round effects.

What was interesting was that growth still remaining resilient despite all the threats.

Now, Annetta, we'll continue the conversation and discuss this with the Bundesbank president, Joachim Nagel, very shortly.

Don't miss that exclusive interview coming up in about 20 minutes' time.

Nathan Even before the latest ramping Up of tensions between the US and Iran sent energy prices higher Markets were expecting the European Central Bank To hike interest rates this month.

That seems even more certain given The global bond sell off Of the past week In recent days The ECB's Joachim Nagel told Bloomberg That the market pricing of More than ninety five Percent probability of a Hike was a quote good Understanding of the central bank's Thinking Other policy makers Have also widely telegraphed Their preference for Another hike Which would follow The quarter point Move back in June Questions do remain Though About whether Another hike Would be enough To tame inflation And get it Back to the two percent Target For the investor Anika Gupta Global head of private Banking wealth management And investments At ING Inflation Is the key Catalyst Behind the Recent unrest In bond markets

The main issue which is spooking the markets is clearly risks of inflation.

Um, given the geopolitical events happening, what's happening to energy pricing et cetera.