ECB’s Nagel Says December Rate Hike Likely

European Central Bank Governing Council member Joachim Nagel said a December interest-rate increase is very likely, citing inflation that has worsened since the bank’s September projections. He warned that rising energy costs could spread to other prices and wages, creating broader inflationary pressure. The ECB will weigh fresh economic forecasts before deciding, and Nagel said a hike could be avoided if the inflation outlook improves significantly. Other policymakers have also indicated that the ECB’s recent pause does not necessarily mark the end of rate increases.