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Nagel – Not Worried About Undershooting Inflation Goal

ECB

ECB’s Nagel speaks in Leipzig, noting the soft German economy but nevertheless building on comments from two weeks ago that it’s too soon for interest rate cuts. Bloomberg headlines:

  • INFLATION GOING IN RIGHT DIRECTION, NOT THERE YET
  • SEES INFLATION BACK AT 2% IN 2025 AT THE LATEST
  • GERMAN ECONOMY MAY HAVE CONTRACTED IN 1Q, THERE'S A LOT TO DO ON GERMANY'S ECONOMY
  • URGES PATIENCE IN SETTING MONETARY POLICY
  • NOT WORRIED ABOUT UNDERSHOOTING INFLATION GOAL
  • HISTORY SUGGESTS WORSE TO CUT TOO SOON THAN TOO LATE

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