Central Banks
ECB Can Cut Rates If Data Confirm Its Forecast, Nagel Says
- Bundesbank president cautions on wage growth, productivity
- Nagel sees positive signals in German manufacturing sector
The European Central Bank headquarters in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank can envisage reducing borrowing costs if new forecasts and fresh data confirm consumer-price growth is headed back to 2%, Governing Council member Joachim Nagel said.
“Before lowering interest rates, we must be convinced on the basis of the data that inflation will actually reach our target in a timely and sustained manner,” the Bundesbank president said Tuesday in a speech in Berlin.