Central Banks
ECB’s Nagel Says History Suggests Worse to Cut Rates Too Early
- Bundesbank chief not worried about undershooting 2% target
- Officials are signaling rate cuts aren’t likely before June
Joachim Nagel
Photographer: Hollie Adams/Bloomberg
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History suggests that it’s worse to loosen monetary policy too soon than too late, according to European Central Bank Governing Council member Joachim Nagel.
“From past experience, it was often more painful if you lowered interest rates too early and then possibly ran into another phase in which prices rose and you then had to take countermeasures,” the Bundesbank chief told Bloomberg on the sidelines of an event in the east German city of Leipzig.