Fri, January 17, 2025
Thu, January 16, 2025

ECB should not rush rate cuts, Nagel says

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The European Central Bank should not rush to lower interest rates because inflation remains high and uncertainty great, ECB policymaker Joachim Nagel said in an interview published on Friday.
Bundesbank President Joachim Nagel emphasized that the European Central Bank (ECB) should not rush into cutting interest rates, despite market expectations for a potential rate cut in April. Speaking at a financial conference in Hong Kong, Nagel highlighted the ongoing challenge of managing inflation, which remains above the ECB's 2% target. He cautioned against premature monetary policy easing, suggesting that the ECB needs to maintain a restrictive stance to ensure inflation is sustainably managed. Nagel's comments reflect a cautious approach, indicating that any decision on rate adjustments would be data-driven and not influenced by market speculation or short-term economic fluctuations.

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[ https://www.reuters.com/markets/europe/ecb-should-not-rush-rate-cuts-nagel-says-2025-01-17/ ]