Nagel: ECB Should Take More Cautious Steps and Avoid Acting Too Swiftly

Forex - ECB Governing Council member and Bundesbank President Joachim Nagel stated that the ECB should take more cautious steps and avoid acting too quickly.

Speaking at the Frankfurt Association of Commerce, Industry and Science, German Bundesbank President Nagel said, "In December, the ECB Governing Council will have new forecasts. This will show us whether we are still on the right track regarding inflation. My advice is to be cautious and not rush."

While awaiting the first inflation forecast for October, which will be announced tomorrow, Nagel reminded that inflation is expected to rise again primarily due to base effects from energy sources.

According to Nagel, despite monthly fluctuations, progress toward the target has been made, but the journey is not yet over. "If you look at the monthly ups and downs, you can see that price stability is not far away, but we still have to go through the final stretch," he stated.

Nagel noted, "Especially since services inflation, which has shown quite slow experiences, continues to remain high at 3.9%. I find this move appropriate as the data has painted a somewhat more favorable inflation picture."

"Particularly given the current uncertainty, the utility of being data-dependent has been proven," he added.