Frankfurt (Germany), 7 May (LaPresse) – ‘If the outlook does not improve significantly, I expect interest rates could rise in June.’ This was stated by the President of the Bundesbank and member of the ECB Governing Council, Joachim Nagel, in an interview with broadcaster RND, referring to the geopolitical situation and rising energy prices. ‘We all hope that the geopolitical situation will calm down and that energy prices, particularly those of oil and gas, will fall more sharply again,’ said Nagel, whilst emphasising that ‘if the outlook does not improve significantly, I foresee an increase in interest rates in June’. Nagel added that inflation forecasts had been key to the ECB Governing Council’s decision. Market, consumer and business expectations had also been taken into account. ‘Of course, we are also monitoring current inflation trends and how rising energy costs are affecting the prices of other goods and services, as well as wages,’ explained the Bundesbank president. If this scenario were to point to a significant rise in inflation in the medium term, ‘then we would need to raise interest rates’.