Nagel (ECB): We must not rush for the interest rate reduction.

The Governing Council of the European Central Bank ( ) Joachim Nagel ( Hoachim Nagel) told Platow Brief that the ECB is right to be careful to reduce them , taking into account increased uncertainty and remaining risks to inflation . “We should not be too hasty in our efforts to normalise monetary policy,” Nagel said. “A careful approach is appropriate given the high uncertainty. Inflation is still increasing at present. Service prices in particular continue to increase dynamically.” The ECB is widely expected to reduce interest rates by a quarter of this month, based on four similar reductions since last June. CORVERSE Policy makers led by President Christine Lagarde concluded at the end of last year that the 2% target is consistently visible, allowing them to focus on the region’s troubled economy, Bloomberg says. Some of the 26 members of the Governing Council felt that there was a need for greater, more aggressive reductions in interest rates in December, according to the ECB’s December meeting. Nagel argued that the 25-point reduction to which policy makers eventually agreed was “appropriate”, pointing to the increase in German inflationary pressures that month, which were slightly higher than expected. “However, I don’t think it’s bad that we’re also discussing 0.5 percentage point” as an option, Nagel added. “This is natural”.