Bundesbank chief says rate-setters must be ‘more stubborn’ in inflation fight

Germany’s central bank boss said the eurozone must be “stubborn” and keep raising borrowing costs to tackle inflation, as rate-setters on both sides of the Atlantic wrestle with the recent turmoil in the financial sector.

“Our fight against inflation is not over,” Joachim Nagel, Bundesbank president, told the Financial Times after he and other members of the European Central Bank’s governing council stuck to plans to increase interest rates by half a percentage point last week.