ECB Can Look Through Below-Target Inflation, Nagel Says

The European Central Bank can look though a bout of below-target inflation but must remain ready to act in either direction if needed, Governing Council member Joachim Nagel said.

“The steady-handed policy we’ve been pursuing since summer 2025 has proved its worth and should be continued,” Nagel said. “Even if the inflation rate falls slightly below our target in the coming quarters, there’s therefore no immediate need for action.”