MNI BRIEF: ECB Easing 'Not On Autopilot' - Bundesbank's Nagel
MNI (LONDON) - ECB monetary easing is unlikely to follow a strict calendar, Bundesbank boss Joachim Nagel said in a speech Wednesday, with policymakers reluctant to commit themselves “in any way in our future decisions.”
“Key interest rates will certainly not fall as quickly and sharply as they have gone up! Depending on the incoming data, the intervals between potential steps may vary,” Nagel said. “Our interest rate policy is not on autopilot.” Overhangs from euro area pandemic and energy crisis support measures mean fiscal policy is not restrictive, Nagel said, although monetary policy should not be affected by a debt ratio set to remain at almost 90%.
Prioritisation remains the main challenge for fiscal policy, Nagel said, although he accepted there could be "a moderate reform of the debt brake as long as Germany fulfills the European debt rules.”