ECB Must Remain Patient to Reach 2% Inflation Target, Says Nagel
Bundesbank President Jens Nagel emphasized the need for patience from the European Central Bank (ECB) in its fight against inflation, stating that it will take more time to ultimately achieve the target rate of 2%. He noted that the current economic situation requires central banks to adopt a cautious approach, especially in light of instability in global markets and declining consumer demand.
Nagel, who is also a member of the ECB’s governing council, stressed that an early reduction in interest rates could reverse the progress made in tackling inflation. He pointed out the necessity of keeping inflation under control to prevent it from rising further, which could adversely impact the economic recovery.
According to him, despite potential challenges, the ECB should stick to its strategy aimed at restoring price balance in the eurozone and creating conditions for long-term sustainable growth. Nagel also warned of the need to monitor the labor market situation, as its activity could significantly influence inflationary processes in the region.
In conclusion, Nagel called for a careful and balanced approach to monetary policy, highlighting the importance of long-term decisions to ensure stable economic growth and achieve inflation targets in the future.
