Central Banks
ECB Mustn’t Cut Too Quickly as 2% Goal Not Reached, Nagel Says
- Elevated core inflation remains a concern for policymakers
- Bundesbank president speaks at conference in Frankfurt
Joachim Nagel
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The European Central Bank should be wary of reducing interest rates too rapidly given inflation hasn’t yet returned sustainably to 2%, according to Governing Council member Joachim Nagel.
While the growth in consumer prices may come close to the level officials aim to deliver in the medium term “for a time in late summer,” it’s likely to bounce back again and remain above-target well into 2025 due to persistently strong gains in services costs, Nagel said Thursday.