Central Banks
Nagel Rebukes ECB Rate-Cut Talk as IMF Warns Against Early Move
- Bundesbank head says inflation fight’s last mile is hardest
- IMF’s Berger welcomes ECB’s data-driven approach to rates
The European Central Bank headquarters in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Bundesbank President Joachim Nagel pushed back against discussions on when the European Central Bank can start lowering borrowing costs, as the International Monetary Fund warned against moving prematurely.
With underlying inflation in the 20-nation euro zone still topping 4%, it’s “not helpful” to talk about cutting interest rates, Nagel said Wednesday in London. He warned that the “last mile” in bringing inflation back to 2% is the hardest — even if the impact of the ECB’s monetary-tightening campaign is becoming more evident.