ECB Must Stay Cautious Despite Inflation Nearing 2%, Nagel Says

The European Central Bank must remain vigilant, despite almost having returned inflation to 2%, Governing Council member Joachim Nagel said.

The Bundesbank chief said Thursday that policymakers are only “at the beginning” of understanding the full implications of President Donald Trump’s trade policy. But after seven reductions in the deposit rate to 2.25%, he said the level of borrowing costs can no longer be considered restrictive.