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ECB's Nagel Expresses "Firm Conviction" That No Rate Cuts Are Forthcoming

ECB

Nagel makes introductory statement on the Bundesbank annual report, speaking characteristically hawkishly. Full comments are found here: https://www.bundesbank.de/en/press/speeches/introd...

  • On QT: "there is no reason for supplying the financial system over the long term with such ample liquidity as is being provided now. I am therefore in favour of taking a steeper path of reduction starting in July"
  • On rates: "the interest rate step announced for March will not be the last. Further significant interest rate steps might even be necessary afterwards"
  • On rate cuts: Until [underlying inflation returns to medium-term target], interest rate cuts are a non-starter. That is my firm conviction."
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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