Free Trial

MNI BRIEF: Too Soon To Say Inflation Has Peaked - Buba Head

(MNI) LONDON
(MNI) London

Bundesbank president Joachim Nagel welcomed news that average headline euro area inflation has fallen to 2.9%, saying it was further evidence the ECB was right to leave key interest rates unchanged following last week’s monetary policy meeting.

But various upside risks to inflation remain, he said in a speech Tuesday, adding that it was not yet possible to say whether upwards price pressures have peaked, especially with tensions in the Middle East threatening to push up energy costs.

“Our tight monetary policy is working, but we must not ease too soon,” Nagel said. Rather, key interest rates will have to remain at a sufficiently high level for a sufficiently long time [...] Inflation has proved stubborn and has not yet been defeated.”

MNI Frankfurt Bureau | +49-69-720-146 | luke.heighton@marketnews.com
True
MNI Frankfurt Bureau | +49-69-720-146 | luke.heighton@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.