Central Banks

ECB’s Nagel Falls in Line With Rate-Setters Open to Summer Cut

  • Bundesbank chief says easing policy now would be too soon
  • Arch-hawk Holzmann warns against expecting any cuts this year
WATCH: “Maybe we can wait for the summer break or whatever but I don’t want to speculate,” Nagel says.Source: Bloomberg
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European Central Bank Governing Council member Joachim Nagel joined a growing group of colleagues who are open to considering lowering interest rates this summer — suggesting the euro zone’s economic tides are starting to turn.

For the first time since borrowing costs reached their peak in September, Nagel — the influential Bundesbank president — conceded in a Bloomberg TV interview that summer may be an appropriate juncture to discuss whether growth and inflation have weakened sufficiently to ease policy.