ECB Mustn’t Commit Either to a Pause or a Rate Cut, Nagel Says

The European Central Bank must retain full optionality on interest rates because uncertainty over the growth and inflation outlook remains elevated, according to Governing Council member Joachim Nagel.

“Since crucial factors can change quickly in the current environment, we are well advised to remain flexible,” the Bundesbank president said on Monday. “This means that pre-determining the future — neither a further interest-rate cut nor a pause in monetary policy — is not sensible.”