Interest rates in the eurozone should be higher, Joachim Nagel, president of the Deutsche Bundesbank, argued on May 9.

“We haven’t finished yet: interest rates should rise further still,” he said in the interview.

The European Central Bank (ECB) increased interest rates by 25 basis points to 3.25% on May 4. This was the smallest rate increase in the tightening cycle the institution started in July.

ECB president Christine Lagarde acknowledged the lower rate increase was partly due to the