Executive board member of the European Central Bank, Nagerl: The central bank is in a favorable position to respond to energy shocks, and the interest rate decision in September will closely monitor data and the situation in the Middle East.

European Central Bank Governing Council member and President of the German Central Bank, Joachim Nagel, stated on Friday that the European Central Bank is currently in a favorable position to address the challenges posed by the surge in energy prices. He emphasized the need to fully evaluate the large amount of economic data that will come in before the decision on whether to raise interest rates in September. Nagel's comments come as the European Central Bank unanimously decided on Thursday to keep the three key interest rates unchanged, but signaled a higher possibility of a rate hike in September. Recently, international oil prices have returned to around $100 per barrel, and natural gas prices have also surged, putting pressure on energy costs once again. European Central Bank President Lagarde revealed after the monetary policy meeting that the possibility of a rate hike was indeed discussed, but it was ultimately agreed upon to maintain the status quo, partially due to the fact that this round of surging energy prices has not yet triggered a clear second round of inflation effects. Nagel defended the decision to keep the key rates stable, stating "This decision to maintain key rates stable is the right one." He pointed out that the rate hike in June has put the European Central Bank in a favorable position, "allowing us to closely monitor further developments." However, he also warned that the situation in the Middle East is highly fragile, and the central bank still faces significant uncertainties. The current tense situation in the Middle East is making the decision-making environment for the European Central Bank increasingly complex. With the United States ending peace talks with Iran and escalating military strikes, conflicts have further escalated this week, with Houthi rebels in Yemen attacking ships in the Red Sea and the situation around the Strait of Hormuz remaining unpredictable. Lagarde has laid the groundwork for action in September, stating that some officials already intend to raise rates this month. Insiders familiar with the situation indicate that unless there is a significant improvement in the inflation outlook in the eurozone, decision-makers are prepared to raise rates again at the next meeting. Looking ahead to the next monetary policy meeting on September 10, Nagel reiterated the European Central Bank's traditional position of not pre-committing to any rate decisions. He stated, "In September, we will have a lot of new data and new forecasts, and at that time, we will reevaluate the inflation outlook."