ECB'S NAGEL: CENTRAL BANK MUST NOT CUT INTEREST RATES TOO QUICKLY
The European Central Bank (ECB) Governing Council member Joachim Nagel said that inflation that’s headed toward the ECB’s target will allow for more interest-rate cuts, but officials mustn’t rush, per Bloomberg.
Key quotes
Since inflation in services should gradually decline as wage pressures decrease, the point at which we can expect a sustained return to the 2% mark is approaching.
It is important to remain cautious and to loosen monetary policy only gradually and not too quickly.
It would therefore be too late to wait until the targeted inflation rate has been reached to ease policy.
Growth likely to stagnate in Q4.
Germany falling behind eurozone average
Slower wage growth to help service prices to moderate.
Trump tariffs boosting eurozone inflation a real risk.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.