ECB Must Remain ‘Vigilant’ Due to Uncertain Outlook, Nagel Says

The European Central Bank must be on high alert to factors that could keep inflation more elevated than predicted, Governing Council member Joachim Nagel said, singling out the labor market as a source of concern.

“It’s imperative to remain vigilant,” the Bundesbank president said Tuesday in a speech in London. “Monetary-policy measures take time before their full effect becomes visible. There’s a lot of uncertainty surrounding the outlook, and we still face risks that the inflation outlook could turn out higher than expected.”