Central Banks

ECB Probably at Rate Peak But Too Soon to Consider Cuts, Nagel Says

  • Inflation is still too high, Nagel says in ZDF interview
  • Policymakers will rely on data for decisions next year

 Joachim Nagel

Photographer: Alex Kraus/Bloomberg
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The European Central Bank has probably concluded its hiking cycle, but it’s still too early to consider lower borrowing costs, according to Governing Council member Joachim Nagel.

“There’s a high likelihood that after 10 rate increases we’ve reached the interest-rate plateau,” Nagel said Friday in an interview with German broadcaster ZDF. “In my view, it’s much too early to think about when rate cuts might possibly happen.”