ECB's Nagel says we still have quite a bit of inflation ahead of us; ECB rate hikes becoming increasingly likely, ECB is no longer in a baseline scenario

The comments from ECB's Nagel suggest a hawkish shift in the narrative, indicating that significant inflation remains in the pipeline and that further rate hikes are likely. This implies a reassessment of the ECB's monetary policy outlook, which could affect expectations for future rate paths, adding bullish pressure to Euro-denominated assets and influencing fixed income market dynamics.