ECB’s Nagel says restrictive policy cannot be ruled out
The Bundesbank President and European Central Bank (ECB) member Joachim Nagel crossed the wires at a financial event in London on Tuesday, acknowledging that high energy prices had driven inflation off its 2026 target.
ECB President Joachim Nagel stated at a financial event in London that high energy prices have pushed inflation away from its 2026 target. He expressed no concern about the labor market and affirmed that "rates are still in neutral territory." Nagel hinted that he cannot rule out the possibility of the ECB adopting a mildly restrictive policy.
The ECB sets interest rates and manages monetary policy for the Eurozone, with the primary goal of maintaining price stability around 2% inflation. Monetary policy decisions are made by the ECB Governing Council eight times a year. Quantitative Easing (QE) and Quantitative Tightening (QT) are tools the ECB can use when necessary to achieve its objectives, with QT being positive for the Euro.
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