Central Banks
ECB’s Nagel Says Rate Cuts Won’t Be Automatic Once They Begin
- Bundesbank chief says officials will have to remain ‘vigilant’
- June is ECB’s preferred starting point for rate reductions
Joachim Nagel
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The prospects for monetary easing by the European Central Bank are improving, though that doesn’t necessarily mean there’ll be a sequence of interest-rate reductions once the process begins, Governing Council member Joachim Nagel said.
With inflation set to return to the 2% target in 2025, the probability is increasing that there’ll be a first cut “before the summer break” in August, the Bundesbank president said Friday. But investors shouldn’t draw the conclusion that the same will happen at every subsequent meeting, he said.