Central Banks
ECB’s Nagel Says Premature to Even Talk About Rate Cuts
- Main effect of policy tightening on inflation yet to unfold
- Confident that euro-area economy can avoid a ‘hard landing’
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The European Central Bank isn’t yet at a point where it should consider reducing borrowing costs, according to Bundesbank President Joachim Nagel.
“It would be premature to lower interest rates soon or to speculate about such steps,” the German central banker said Tuesday in Nicosia. “It is not just the level of interest rates that matters for the stance, but also expectations about the future path of interest rates. The main effect of the policy tightening on inflation is yet to unfold.”